The Operational Re III Ltd. transaction involves Zurich Insurance Company Ltd, as the ceding company, entering into reinsurance agreements with the Bermuda special purpose insurer, Operational Re III Ltd., to acquire capital markets backed, fully-collateralized cover for the operational risk insurance policy issued for the ultimate benefit of Credit Suisse. ILS and capital market investors have fully-collateralized the reinsurance cover for the operational risk of Credit Suisse. Partner Brad Adderley led the deal with assistance by Counsel Matthew Carr.
This third operational risk catastrophe bond transaction for Credit Suisse, listed on the Bermuda Stock Exchange (BSX), is the largest. A three-year USD146 million Operational Re II cat bond was listed on the BSX in June 2018, with a previous five-year transaction listed on the BSX in 2016. Appleby assisted in all three cat bond transactions.