France-based reinsurance company SCOR has announced today the successful sponsorship of its new $300 million Atlas Capital UK 2018 catastrophe bond, the first of its kind following new UK legislation.
The multi-year collateralised deal will protect SCOR from named storms in the U.S., earthquakes in the U.S. and Canada, and windstorms in Europe.
The transaction has received the approval of the PRA and the UK regulatory authorities and sees Atlas Capital UK 2018’s risk period run until May 31, 2022.
Victor Peignet, CEO of SCOR Global P&C, praised the move, saying it exemplified the firm’s “Vision in Action” strategy, a restructure which aimed to increase the firm’s client centricity.
The new Atlas Capital UK 2018 cat bond – the latest in 15 previous capital protection transactions by SCOR since 1999 – was priced on May 24 2018 and closed on May 31.
The deal saw GC securities – the capital markets and ILS arm of reinsurance broker Guy Carpenter – act as Sole Structuring Agent and Bookrunner, while London-based law firm Clifford Chance advised.
“This new cat bond offers SCOR additional multi-year collateralise protection. Being the first company to sponsor a cat bond on the London market shows SCOR’s confidence in the UK’s ILS regime and our commitment to the cat bond market, as well as our capacity to innovate. I would like to sincerely thank the PRA (Prudential Regulation Authority) and the UK regulatory authorities for their assistance and responsiveness throughout this process”, Peignet concluded.