SCOR Returns to Catastrophe Bond Market with New Offering
French reinsurance giant SCOR has made a successful return to the catastrophe bond market, securing a substantial $240 million in retrocession protection. This new financial safeguard is designed to cover a range of natural disasters, including named storms in the US and the Caribbean, earthquakes in the US and Canada, and windstorms across Europe.
Atlas Capital DAC (Series 2025-1): A New Chapter in Cat Bonds
The latest issue, Atlas Capital DAC (Series 2025-1), marks the nineteenth catastrophe bond under the Atlas series and the twentieth issuance from SCOR since its inception in 2000. The coverage period for this bond spans from June 1, 2025, to May 31, 2028, following regulatory approval from Irish authorities.
SCOR, recognized as one of Europe’s leading reinsurers, emphasizes the integration of ESG considerations in the Atlas Capital DAC (Series 2025-1) offering. This approach is intended to facilitate investors’ due diligence processes.
Investor Enthusiasm and Market Timing
The catastrophe bond was issued with an interest spread of 7.25% and was met with robust investor demand, highlighting the burgeoning appeal of the cat bond asset class. SCOR notes that the bond utilizes an aggregate, index-based trigger structure issued by Atlas Capital DAC, a specially purposed vehicle established in Ireland under Solvency II regulations. Originally created in 2023 for the Series 2023-1 issuance, this vehicle supports SCOR in sponsoring bonds for various perils across both life and health, as well as property and casualty lines.
“The benefits of this vehicle were again visible this year, as it allowed for a fast and cost-effective issuance process. In particular, the transaction was offered to investors around two months in advance of the start of the risk period, allowing SCOR to benefit from the currently favorable conditions in the cat bond market,” explains the reinsurer.
Strategic Alignment with Forward 2026
The size of the $240 million issuance aligns with SCOR’s catastrophe exposure management and retrocession strategy as outlined in the company’s Forward 2026 strategic plan. François de Varenne, Group CFO and Deputy CEO of SCOR, remarked, “SCOR is pleased to sponsor a new cat bond this year, securing multi-year protection against peak natural perils from the ILS market at favorable pricing conditions. SCOR has been a regular sponsor of cat bonds over the last 25 years, and we are delighted by the strong and continued investor demand, as cat bonds remain an integral part of our risk partnerships strategy under the Forward 2026 plan. We are also very pleased with the efficiency gains made by reusing Atlas Capital DAC for a third year.”
For more information on this and other catastrophe bonds, visit the Artemis Deal Directory.
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