SCOR launches first cat bond approved in Ireland under Solvency II

French reinsurer SCOR has sponsored a new $200 million catastrophe bond, following approval of the Central Bank of Ireland (CBI) and the Irish regulatory authorities, and a "very positive response" from the investors.

Atlas Capital Reinsurance 2020 DAC will provide the group with a multi-year risk transfer capacity of $200 million to protect itself against storms in the US and earthquakes in the US and Canada. The risk period will run from April 30, 2020, to May 31, 2024.

The issue has received the approval of the Central Bank of Ireland (CBI) and the Irish regulatory authorities.

Atlas Capital Reinsurance 2020 DAC is the first index-based trigger cat bond approved in Ireland under Solvency II.

SCOR said an effective “capital shield” is one of the cornerstones of the group, which has regularly used capital market solutions for this purpose.

Jean-Paul Conoscente, CEO of SCOR Global P&C, said: “SCOR is pleased to announce the success of this new catastrophe bond issue. The very positive response from investors has enabled us to scale up the issue. This is a true testament to SCOR’s legacy as a frequent and innovative sponsor on the ILS market. I would like to warmly thank the Central Bank of Ireland and the Irish regulatory bodies for the efficiency with which they reviewed and approved this transaction.”