SWISS RE GETS $1.5BN IN CREDIT FROM JP MORGAN, PLANS ACQUISITIONS

Swiss Re has signed a 20-year $1.5bn loan deal with JP Morgan which the reinsurer said would enable it to make acquisitions at favourable prices. Swiss Re CEO Jacques Aigrain said that the letter of credit (LoC) would increase the ability of Swiss Re to gain from opportunities arising in the current financial turmoil. The new LoC replaces an existing loan deal with the investment bank. However, Swiss Re said that the LoC could also be used to “replace and expand” the arrangements that the reinsurer has in place to meet US regulatory requirements for its life operations.