SCOR is first reinsurer to sponsor UK cat bond
SCOR has become the first reinsurer to use the new UK ILS regime to issue a catastrophe bond.
Atlas Capital UK 2018 will provide the group with multi-year risk transfer capacity of $300 million to protect itself against named storms in the US, earthquakes in the US and Canada, along with windstorms in the US.
The cat bond was priced on May 24 and closed on May 31 this year. GC Securities acted as the sole structuring agent and book runner for the deal, with Clifford Chance advising. The transaction has received the approval of the PRA and UK regulatory authorities.
This move is part of SCOR’s policy of diversifying its capital protection tools.
Since 1999, SCOR has completed 15 transactions, including cat bonds, sidecars, mortality bonds and contingent capital protections.
“This new cat bond offers SCOR additional multi-year collateralised protection, including for European Windstorm, which is in line with the growth of our portfolio as anticipated in “Vision in Action”,” said Victor Peignet, CEO of SCOR Global P&C.
“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.”
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