France headquartered international reinsurance firm SCOR hailed the profitable placement of its $75 million Atlas Capital DAC (Sequence 2023-1) multi-peril retrocession disaster bond, whereas noting that the decreased dimension, in comparison with earlier cat bonds, is in keeping with its efforts to scale back its total disaster publicity.
At simply $75 million in dimension, the brand new Atlas Capital DAC cat bond fell a good distance in need of changing SCOR’s maturing $250 million Atlas Capital UK 2019 PLC (Sequence 2019-1) cat bond deal.
However, the reinsurance agency has been pulling-back and trimming its disaster exposures, particularly in some elements of the US, which appears to have decreased its want for retro from the cat bond market this yr.
Nevertheless, the reinsurer stated of the brand new cat bond, “SCOR is now in a great place to reap the advantages from a beautiful cat reinsurance atmosphere in 2024 and past.
“It also confirms SCOR’s commitment to regular cat bond issuances in line with its past strategy.”
SCOR famous that the transaction has now acquired the approval of the Irish regulatory authorities, the place the issuing automobile is domiciled.
SCOR famous that the brand new Atlas Capital DAC cat bond automobile can present it flexibility in with the ability to subject each P&C cat bonds and life and well being associated cat bond offers as nicely.
As well as, SCOR famous that the cat bond providing built-in ESG associated concerns associated to its business, with the intention to help traders’ due diligence.
“Despite a significant market hardening since the end of 2022, Atlas Capital DAC Series 2023-1 was well received and benefited from high investor demand,” SCOR stated.
As we’d reported, SCOR’s new cat bond finally priced roughly 17% beneath the preliminary mid-point of unfold steering.
The brand new Atlas Capital DAC 2023-1 cat bond offers SCOR a 3 yr supply of combination retrocession on an business loss index set off foundation, towards losses from named storms within the U.S., earthquakes within the U.S. and Canada, in addition to European windstorms.
Atlas Capital DAC is, “A multi-arrangement special purpose vehicle approved in Ireland under Solvency II,” SCOR stated.
Including, “This new vehicle may be utilized by the Group to sponsor future cat bonds in order to secure protection against various perils in both L&H and P&C in a more dynamic and cost-effective manner.”
Jean-Paul Conoscente, CEO of SCOR P&C, commented on the brand new cat bond, “SCOR is happy to show as soon as once more to the ILS market and safe multi-year safety towards peak pure perils. Cat bonds are an integral a part of capital safety for SCOR, which has been an everyday sponsor for greater than 20 years.
“The market recognized and supported our commitment to the asset class, and we are delighted with the strong investor demand. A novelty with Atlas 2023 is the establishment of a new type of vehicle which may be used for future cat bonds across both P&C and L&H, and we are grateful to the Irish regulatory bodies for their support and responsiveness during this transaction.”
The corporate stated that sustaining “an efficient capital shield is a strategic cornerstone of the SCOR group,” simply one among a spread of capital market retrocessional reinsurance options the corporate utilises.
You’ll be able to learn all about this Atlas Capital DAC (Sequence 2023-1) disaster bond from SCOR and each different cat bond transaction within the Artemis Deal Listing.
