French reinsurer SCOR has returned to the UK market for the launch of a second catastrophe bond, securing multi-year risk transfer capacity of $250 million to protect against named storms in the U.S, earthquakes in the U.S and Canada, and windstorms in Europe.
Atlas Capital UK 2019 PLC will run from June 1, 2019 to May 31, 2023, and has been approved by the Prudential Regulatory Authority (PRA) and other UK authorities.
It was priced on May 24 and closed on May 31, with GC Securities acting as Sole Structuring Agent, GC Securities and Aon acting as Joint Bookrunners, and Clifford Chance as an advisor to SCOR.
This latest sponsorship follows on from SCOR’s $300 million Atlas Capital UK 2018 cat bond, which was launched on June 1, 2018, and was the first of its kind under the UK’s new ILS regulatory regime.
SCOR has regularly utilised the capital markets since 1999, completing 16 transactions in what it considers to be a “capital shield policy.”
These transactions have included cat bonds, sidecars, mortality bonds, and other contingent capital protections.
“Having been the first company to successfully sponsor a cat bond under the UK ILS regime in 2018 and continuing its policy of diversifying capital protection tools, SCOR has returned to the London Market to issue Atlas Capital UK 2019,” said Jean-Paul Conoscente, CEO of SCOR Global P&C.
“The strength of support for this transaction enabled SCOR to upsize it despite current market conditions – which is reflective of the quality of SCOR’s franchise and reputation as an innovative and long-term sponsor,” he continued.
“The SCOR team is grateful to the PRA and the other UK regulatory authorities involved for the speed and efficiency they have once again demonstrated in their review and approval of the transaction.”
