Swiss Re has sponsored $400m of coverage for its first insurance-linked security relating to life in... Swiss Re has sponsored$400m of coverage for its first insurance-linked security relating to life insurance risk. The company has linked up with Vita Capital to provide \$400m of payments to Swiss Re in certain extreme mortality risk scenarios. To fund any potential payments, Vita Capital has issued the same amount in principal at-risk variable rate notes. The coverage is based on a combined mortality index similar to other index-based insurance-linked securities. The index will measure annual general population mortality in five countries by applying predetermined weights to publicly reported mortality data from each country. If during any one calendar year the combined mortality index exceeds 130% of its baseline 2002 level, then the principal of the notes will be at risk. The bond matures on 1 January 2007.