SCOR returns with $240m cat bond in ‘challenging’ ILS market

Global reinsurance giant  SCOR has returned to the insurance-linked securities (ILS) market with a new catastrophe bond Atlas Capital Reinsurance 2022 DAC, which will provide the carrier with multi-year risk transfer capacity of $240 million.

The new cat bond will cover  SCOR against certain impacts from named storms in the US and earthquakes in the US and Canada, as well as European windstorms. The risk period for Atlas Capital Reinsurance 2022 will run from June 1, 2022, to May 31, 2025.

Atlas Capital Reinsurance 2022 DAC is an aggregate, index-based trigger cat bond approved in Ireland under Solvency II. The transaction has received the approval of the Irish regulatory authorities.

SCOR noted the cat bond offering integrates ESG related considerations to support investors' due diligence.

Jean-Paul Conoscente, CEO of  SCOR P&C, commented: “ SCOR is pleased to renew its commitment to the ILS market, securing multi-year protection in a challenging market environment. Issuing cat bonds is an integral part of  SCOR's capital protection, of which Atlas 2022 is the latest example.

“The positive market reaction, securing increased capacity, is a tribute to  SCOR's commitment to the ILS market and more broadly to sustainable underwriting. We are grateful to the Irish regulatory bodies for their support and responsiveness during this transaction.”

The cat bond was priced on May 23, 2022 and closed on May 27, 2022. GC Securities acted as sole structuring agent and joint-bookrunner for the deal, and Natixis acted as sustainability advisor and joint-bookrunner. Willkie Farr and Walkers advised  SCOR as legal counsels.

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