Swiss Re says Carolina cat bond first for US pool

LONDON, July 30 (Reuters) - Swiss Reinsurance Co RUKN.VX said a $200 million catastrophe bond programme in North Carolina marked the first time that a U.S. collective insurance pool had accessed the capital markets for hurricane risk.

The reinsurer announced on Wednesday the closing of a private placement of insurance-linked securities through Parkton Re, a Cayman Islands-exempted company.

The deal had initially been expected to total $125 million. But rising prices in the last several months show strong demand for cat bonds, which insurers use to manage their exposure to natural disasters by passing on potential losses to investors.

Easing credit worries in global markets, and the bonds' role as a diversifying asset, have helped to rekindle demand. Swiss Reinsurance America Corp will purchase reinsurance from Parkton Re, transforming the proceeds of the bond issue into a reinsurance agreement for the North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association.

The bond is rated B plus and matures on May 6, 2011, and its coupon is the return on a Treasury Money Market Fund plus 10.50 percent, Swiss Re said. (Reporting by Andrew Torchia; Editing by Andy Bruce)