Crédit Agricole Assurances’ P&C insurance subsidiary Pacifica has made its debut venture into the insurance-linked securities (ILS) market with the sponsoring of a €160 million catastrophe bond issued by Taranis Re DAC, a special purpose vehicle incorporated in Ireland covering Metropolitan France, Monaco and Andorra.
According to Pacifica, the cat bond will provide it with reinsurance protection as part of its overall catastrophe reinsurance programme. The firm added this new venture “diversifies its sources of reinsurance protection against catastrophes” and provides a multi-year protection running from January 2024 until December 2027.
The transaction was upsized, from an initial announcement of €100 million for the Class A Notes, meeting Pacifica’s capacity objectives.
The issuance, supported by Guy Carpenter, provides coverage through two tranches of Notes:
Class A Notes – providing €110 million of Ultimate Net Loss, Per Occurrence cover, in respect of losses from Windstorm and Hail Storm.
Class B Notes – providing €50 million of Ultimate Net Loss, Annual Aggregate cover, second event basis, in respect of losses from Windstorm only
The Initial Risk Spread of the notes is respectively of 8.25% for the Class A Notes and 6.00% for the Class B Notes.
Guillaume Oreckin, CEO of Pacifica commented, “We are thrilled with the positive response from the investor community to this Cat Bond, placed with more than a dozen capital market investors in Europe, North America and Asia.
“With Taranis Re DAC, we are now able to access reinsurance capacity from the capital markets, efficiently complementing our existing traditional reinsurance and strengthening the resilience of our growing reinsurance cat program.”
Read more about this Taranis Reinsurance DAC 2023 catastrophe bond, and all others, in the Deal Directory of our sister publication, Artemis.
