France-headquartered world reinsurance firm SCOR is again within the disaster bond market looking for $200 million or extra in fully-collateralized retrocession from an Atlas Capital DAC (Series 2025-1) issuance, Artemis has discovered.
This new Atlas Capital DAC Collection 2015-1 disaster bond would be the nineteenth from SCOR to make use of the Atlas title and the 20 th cat bond from the corporate for the reason that 12 months 2000, together with its Horizon securitization of credit score liabilities again in 2001.
SCOR has been sponsoring disaster bonds for the reason that 12 months 2000 and you can read about all of them by filtering our Deal Directory by sponsor.
This 12 months, SCOR is looking for $200 million of capital markets backed multi-peril and worldwide retrocessional safety from this Atlas Capital DAC 2025-1 cat bond.
In 2025, the main target for SCOR’s retro cat bond issuance has broadened a bit, with protection sought throughout the US, Caribbean, Canada and Europe, in comparison with last year’s deal which featured solely US concentrated risk.
The reinsurer has a $240 million Atlas Capital Reinsurance 2022 DAC (Series 2022-1) cat bond that’s scheduled to mature this June and coated U.S. named storm, U.S. & Canada earthquake, European windstorm, so this seems set to switch a few of that protection whereas additionally including Caribbean named storm cowl to the safety, we perceive.
For this Atlas Capital 2025 cat bond, SCOR is once more utilizing its Eire-based designated exercise firm named Atlas Capital DAC, which it used for the final two points as nicely.
Atlas Capital DAC is about to supply traders a $200 million single tranche of Collection 2025-1 Class A disaster bonds notes that will probably be offered and the proceeds used to collateralize a retrocessional reinsurance settlement between the car and SCOR SE, Artemis has discovered from sources.
This Atlas Capital DAC 2025-1 disaster bond will profit SCOR by offering the reinsurance firm a roughly three-year supply of annual combination, weighted {industry} loss set off primarily based retro reinsurance safety, operating by means of to the top of Could 2028.
The coated perils and areas for this cat bond will probably be named storms within the U.S. and Caribbean (inc. DC, Puerto Rico & Virgin Islands), in addition to earthquakes within the U.S. (inc. DC, Puerto Rico & Virgin Islands) and Canada, and windstorms in Europe, sources stated.
We perceive that PCS would be the industry-loss index reporting agent for named storm and earthquake dangers, whereas PERILS will report on European windstorm loss occasions.
There are completely different index worth attachment factors for North America and Europe, whereas occasion deductibles are additionally to be enforced for all perils to ensure that a loss occasion to qualify and combination in the direction of the attachment factors over the annual threat durations.
The one at present $200 million tranche of Collection 2025-1 cat bond notes that Atlas Capital DAC will subject include an preliminary attachment chance of 4.08%, an preliminary base anticipated lack of 3.29% and are being provided to cat bond funds and traders with worth steering in a spread from 7.5% to eight%, we’re informed.
For comparability, final 12 months’s Atlas Capital 2024 cat bond that solely coated North American wind and quake had an preliminary anticipated lack of 3.87% and priced at 12.5%, whereas the Atlas Capital 2023 cat bond that additionally coated European windstorms had an preliminary anticipated lack of 2.1% and priced to pay traders a diffusion of seven.25%.
So, comparably, the multiple-at-market on supply with this Atlas Capital 2025 cat bond appears decrease than SCOR’s different current issuances.
You’ll be able to 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.
