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(From Reinsurance)
Swiss Re and Japanese (re)insurance company Mitsui Sumitomo have arranged a $100m catastrophe risk swap.
Under the terms of the transaction, Swiss Re will exchange a $50m North Atlantic hurricane and European windstorm risk for a $50m Japan typhoon exposure.
The catastrophe risks represent peak risks for both parties. By carrying out the swap the companies are looking to improve the diversification of their risk portfolios.
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