The Covéa Group has entered into a €90 million reinsurance agreement with Hexagon Re, an Irish Designated Activity Company that will provide the mutual insurance society with windstorm reinsurance cover across Metropolitan France.
The agreement is set to begin from January 1st, 2018 and provides fully collateralised protection with two €45 million classes of catastrophe bond notes issued in a Rule 144A offering.
The reinsurance agreement matures in January 2022, with each class addressing a different risk level.
Pierre Michel, Head of Group reinsurance at Covéa, stated; “this is the first indemnity trigger, aggregate basis cat bond issuance addressed specifically at covering windstorm across Metropolitan France.
“With this successful transaction, Covéa reaffirms its innovation capabilities.
“The Group has now further diversified its access to worldwide reinsurance capacity, within a secure legal and financial framework. This initiative confirms the Group’s strategy with respect to reinsurance protection.”
The transaction will cover the annual aggregate cost of European wind-related damage exceeding predetermined thresholds to the group’s French subsidiaries on an indemnity trigger.
