Global reinsurance company SCOR has successfully sponsored a new catastrophe bond, Atlas Capital DAC Series 2023-1, which will provide the firm with multi-year risk transfer capacity of $75 million to protect itself against named storms in the U.S. and earthquakes in the U.S. and Canada, as well as European windstorms.
Atlas Capital DAC Series 2023-1 is an aggregate, index-based trigger cat bond issued by Atlas Capital DAC, a multi-arrangement special purpose vehicle approved in Ireland under Solvency II.
According to SCOR, the risk period for the new cat bond will run from June 1st, 2023, to May 31st, 2026.
The cat bond was priced on May 17th, 2023, and closed on May 26th, 2023.
SCOR suggests that despite a significant market hardening since the end of 2022, Atlas Capital DAC Series 2023-1 was “well received and benefited from high investor demand.”
The transaction has received the approval of the Irish regulatory authorities, and the offering “integrates ESG-related considerations to support investors’ due diligence,” says SCOR.
GC Securities acted as Sole Structuring Agent and Sole Bookrunner for the deal. Willkie Farr and Walkers advised SCOR as legal counsels.
The French reinsurer noted, “This new vehicle may be utilised by the Group to sponsor future cat bonds in order to secure protection against various perils in both L&H and P&C in a more dynamic and cost-effective manner.
“The size of the cat bond was adapted in line with the significant reduction of SCOR’s cat exposures over the last 18 months.
“SCOR is now in an ideal position to harvest the benefits from an attractive cat reinsurance environment in 2024 and beyond.
“Maintenance of an efficient capital shield is a strategic cornerstone of the SCOR group, which deploys a full array of capital market solutions.”
Jean-Paul Conoscente, CEO of SCOR P&C, commented, “SCOR is pleased to turn once again to the ILS market and secure multi-year protection against peak natural perils.
“Cat bonds are an integral part of capital protection for SCOR, which has been a regular sponsor for more than two decades. The market recognized and supported our commitment to the asset class, and we are delighted with the strong investor demand.
“A novelty with Atlas 2023 is the establishment of a new type of vehicle which may be used for future cat bonds across both P&C and L&H, and we are grateful to the Irish regulatory bodies for their support and responsiveness during this transaction.”
You can read all about this Atlas Capital DAC (Series 2023-1) catastrophe bond from SCOR and every other cat bond transaction in the Deal Directory of our sister publication, Artemis.
