French mutual re/insurance company Groupama has issued a new Cat bond Aggregate to protect its climatic exposures in France, placed and structured by the Aon Securities team.
The €150 million Quercus Re DAC Cat bond came into effect on July 19, its coverage has been designed to run across a three year term.
This is an indemnity cover for the accumulation of events during the same annual storm season. It will be triggered if the cumulative storm claims reach €290 million.
The placement, Groupama highlighted, is 50% higher than the previous Cat bond issued by the group in 2023, which was due to expire.
Last year, €100 million of aggregate reinsurance protection was secured by the group, aimed to protect France against adverse deviation of climatic losses, via Aon’s Randolph Re private cat bond platform
Groupama has also previously sponsored Green Valley cat bonds in 2007 and 2010, then Green Field cat bonds in 2010 and 2013.
Details of every Groupama catastrophe bond can be found in Artemis’ extensive Deal Directory here.
The Quercus Re DAC Cat bond, was made to a rapidly growing panel of 20 investors on behalf of funds specialising in Cat bonds, a sign of investor interest in Groupama and its portfolio, the group noted.
Pierre Lacoste, Groupama’s reinsurance director, stated: “This record issue in Europe in terms of amount for an Aggregate Cat bond represents effective protection for our retained climate claims.
“It also aims to further diversify our reinsurance capacity and demonstrates our desire to build a long-term relationship with the Insurance Linked Securities market.”
The Quercus Re DAC has been registered in Ireland as a Designated Activity Company for the purpose of issuing a series of catastrophe bond notes.
This 144A bond issue has been approved by the Irish regulatory authorities under the Solvency 2 regime.
