Swiss Re Ltd (Swiss Re) has completed an
offering of USD 500 million, 6-year senior exchangeable notes, which may be
stock settled at the option of Swiss Re or may be exchanged at the option of
noteholders for registered shares of Swiss Re, unless Swiss Re elects to settle
the exchange of notes in cash. Swiss Re has purchased call options on its own shares,
which allow it to settle an exchange by noteholders without issuing new shares.

As is customary for international offerings
of debt securities by Swiss (re-)insurers, Swiss Re issued notes to, and which
are held by, a repackaging vehicle, in this case ELM B.V. (or a nominee acting
on its behalf). ELM B.V. issued its own 6-year exchangeable notes secured by
the notes issued by Swiss Re.

Barclays Bank PLC, Deutsche Bank AG, London
Branch, J.P. Morgan Securities plc, Merrill Lynch International and UBS Limited
acted as joint lead managers.

Bär & Karrer advised Swiss Re in this
transaction. The team included Thomas U. Reutter, Roland Truffer and Daniel
Raun (all Capital Markets).

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