Swiss Re signs four-year weather deal with Petro

Reinsurance company Swiss Re has signed a four-year, $50 million weather risk programme with heating oil company Petro to hedge against warm winter temperatures.

The derivatives programme involves a strike price based on a cumulative number of heating degree-days (HDDs) in the standard November–March winter period, says William Windle, senior vice-president at Swiss Re Financial Products in New York. He says the strike price is based on a 10-year rolling average of HDDs, but declined to reveal wh