Swiss Re covers China's Guangdong against cyclone, rainfall losses

ZURICH, Oct 28 (Reuters) - Swiss Re has agreed as sole reinsurer to protect seven prefectures of Guangdong province in China against losses from tropical cyclones and excessive rainfall, it said on Friday.

The pilot programme makes the Swiss group a partner of local insurers led by the People’s Insurance Company of China (PICC) in 2016. The programme covers Guangdong province against losses of up to $350 million.

A first payout was already triggered after super-typhoon Haima made landfall in the city of Shanwei on Oct. 21, it said. The programme, expected to be adjusted and renewed annually, would be rolled out in a total 10 prefectures by the end of this year. (Reporting by Michael Shields)