Swiss Re Capital Markets Europe will trade in derivatives contracts in weather and energy risk transfer, and insurance-linked securities products.
Stuart Brown was named CEO of the new business. Brown is currently head of origination, weather and energy for Europe, the Middle East, Africa and Asia-Pacific at Swiss Re’s corporate solutions division, and will retain that role.
Intelligent Insurer said the firm had applied for regulatory approval.
Swiss Re is the world’s second largest reinsurance company, AM Best, a ratings agency, said in September. The reinsurer said on its website that it wrote $19.589bn in gross premiums during the first half of 2018.
Swiss Re already has reinsurance underwriting operations for life and property and casualty risk in Luxembourg. Reinsurance is sometimes referred to as “insurance for insurers”.
Several other insurance firms, including AIG, CNA Hardy and RSA, have also established EU operations in Luxembourg in advance of Brexit.