Swiss Re says it has secured a long-term US$1.5 billion letter of credit (L/C) facility with JP Morgan.

The world's largest reinsurer says the facility will enable it to compete for "significant opportunities" for stronger insurers and reinsurers in today's difficult financial markets.

Long-term financing

Swiss Re says the L/C facility with JP Morgan demonstrates its ability to access long-term financing at competitive rates.

"Clients turn to us as they look for a very strong counterparty in terms of superior capital and liquidity - and we are responding accordingly," says Swiss Re's CEO Jacques Aigrain.

L/C features

Maturing in 2028, the L/C facility has a life of 20 years, with a pricing reset feature after the first 10 years.

This facility replaces and expands existing arrangements Swiss Re currently has in place in order to meet US regulatory requirements for its life business.

Opportunities

The reinsurer appears convinced the facility will help it to win business in new and wider markets.

"As a result of the unprecedented turmoil in the capital markets, significant opportunities are emerging for well-capitalised insurance and reinsurance companies," according to a statement on the L/C deal issued by the reinsurer.

Swiss Re says it is in a strong position to respond to increasing demands from its clients for reinsurance solutions, both in property and casualty cover as well as life and health business.

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