French reinsurer SCOR has cited the advantages of early issuance as being a key issue behind the profitable placement of its newest disaster bond, saying this helped them entry presently beneficial market situations with the current $240 million Atlas Capital DAC (Series 2025-1).
SCOR returned to the catastrophe bond market in March with its newest Atlas Capital cat bond deal, initially focusing on a $200 million or better tranche of Sequence 2025-1 cat bond notes, which eventually upsized by 20% to secure the reinsurer with $240 million of capital markets backed multi-peril and international retrocessional reinsurance protection, while the notes were priced 6.5% below the mid-point of initial spread guidance, at 7.25%.
This marks the nineteenth disaster bond sponsored by SCOR to make use of the Atlas identify and the 20th cat bond from the corporate because the yr 2000, together with its Horizon securitization of credit score liabilities again in 2001.
This $240 million Atlas Capital DAC 2025-1 disaster bond will present SCOR a roughly three-year supply of annual combination, weighted business loss set off based mostly retro reinsurance safety, operating by way of to the tip of Could 2028.
The lined perils and areas for this cat bond are named storms within the US and Caribbean (together with DC, Puerto Rico & Virgin Islands), in addition to earthquakes within the US (together with DC, Puerto Rico & Virgin Islands) and Canada, and windstorms in Europe too.
For this Atlas Capital 2025-1 cat bond, SCOR as soon as once more used its Eire-based designated exercise firm named Atlas Capital DAC, which it used for its final two points as effectively.
For these unaware, Atlas Capital DAC was established in 2023 for the Series 2023-1 cat bond issuance, and it might be utilized by SCOR to sponsor cat bonds overlaying varied perils in each life & well being and property & casualty, with the reinsurance agency additionally sponsoring a Series 2024-1 deal.
The French reinsurance firm has been sponsoring disaster bonds because the yr 2000 and you can read about all of them by filtering our Deal Directory by sponsor.
SCOR famous that the advantages of this automobile have been once more seen this yr, because it allowed for a quick and cost-effective issuance course of.
Notably, the transaction was supplied to cat bond buyers round two months prematurely of the beginning of the danger interval, which finally SCOR stated allowed it to profit from the beneficial situations which are presently being seen throughout the disaster bond market.
It’s vital to notice, that the dimensions of this Atlas Capital DAC (Series 2025-1) issuance falls consistent with SCOR’s disaster exposures, and inside its retrocession technique beneath the Ahead 2026 strategic plan, which identifies danger partnerships, together with capital market options like cat bonds , as one of many Group’s levers for worth creation.
As well as, GC Securities, the capital markets and insurance-linked securities (ILS) specialist unit of reinsurance dealer Man Carpenter acted as Sole Structuring Agent and Sole Bookrunner for the deal, whereas Willkie Farr and Walkers suggested SCOR on the transaction as authorized counsels.
François de Varenne, Group CFO and Deputy CEO of SCOR, commented: “SCOR is happy to sponsor a brand new cat bond this yr, securing multi-year safety in opposition to peak pure perils from the ILS market at favorable pricing situations.
“SCOR has been an everyday sponsor of cat bonds over the past 25 years, and we’re delighted by the sturdy and continued investor demand, as cat bonds stay an integral a part of our danger partnerships technique beneath the Ahead 2026 plan.
“We’re additionally very happy with the effectivity features made by reusing Atlas Capital DAC for a 3rd yr.”
As a reminder, you possibly can learn all about this Atlas Capital DAC (Series 2025-1) disaster bond from SCOR and each different cat bond transaction within the Artemis Deal Directory.
