SCOR returns with $175m Atlas Capital cat bond, ‘very pleased with efficiency gains made’
Global reinsurance giant SCOR has returned to the catastrophe bond market with the issuance of Atlas Capital DAC Series 2024-1, which will provide the group with multi-year risk transfer capacity of $175 million to protect against named storms in the US and earthquakes in the US and Canada.
The new cat bond will be its 18th issuance under the Atlas name, and the second from its Irish special purpose vehicle Atlas Capital DAC approved under Solvency II. The vehicle was created in 2023 for the Series 2023-1 cat bond issuance, and to sponsor cat bonds covering various perils in both L&H and P&C.
SCOR CFO highlighted that the benefits of this vehicle were visible this year, as it allowed for “efficiency gains” and “a faster and more cost-effective” issuance process.
The new 2024 aggregate, index-based trigger cat bond was priced on May 24 and issued on May 30. SCOR claimed Atlas Capital DAC Series 2024-1 was “well received and benefited from high investor demand”.
The risk period for Atlas Capital DAC Series 2024-1 will run from June 1, 2024 to May 31, 2027. The transaction has received the approval of the Irish regulatory authorities. The cat bond offering integrates ESG related considerations to support investors' due diligence, SCOR noted.
The company stated that the size of the Series 2024-1 issuance is “in line with the group’s cat exposures and with its retrocession strategy under the Forward 2026 strategic plan, which identifies risk partnerships – including capital market solutions like cat bonds – as one of the Group’s levers for value creation”.
François de Varenne, group chief financial officer and deputy chief executive officer of SCOR, said: “SCOR is pleased to sponsor a new cat bond this year, securing multi-year protection against peak natural perils from the ILS market. We are delighted by the strong investor demand, as cat bonds remain an integral part of SCOR’s capital protection under the Forward 2026 strategic plan. We are also very pleased with the efficiency gains made by reusing Atlas Capital DAC for a second year.”
GC Securities acted as Sole Structuring Agent and Sole Bookrunner for the deal. Willkie Farr and Walkers advised SCOR as legal counsels.
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