21Dec06

Press release

P&C

SCOR has successfully sponsored a new EUR 120 million catastrophe bond

SCOR has successfully sponsored a new catastrophe bond (“CAT Bond”). On December 21, 2006, SCOR entered into a multi-year property catastrophe retrocession agreement with Atlas Reinsurance III p.l.c. (“Atlas III”). Atlas III is a special purpose reinsurance company incorporated under the laws of Ireland in order to provide EUR 120 million of additional reinsurance coverage for SCOR and its affiliates.

SCOR has successfully sponsored a new catastrophe bond (“CAT Bond”). On December 21, 2006, SCOR entered into a multi-year property catastrophe retrocession agreement with Atlas Reinsurance III p.l.c. (“Atlas III”). Atlas III is a special purpose reinsurance company incorporated under the laws of Ireland in order to provide EUR 120 million of additional reinsurance coverage for SCOR and its affiliates. 
 
The retrocession agreement is fully funded by proceeds received by Atlas III from the issuance of this CAT Bond, already fully purchased in a private placement to institutional investors. 
 
This CAT Bond provides coverage for second and subsequent Europe Windstorm or Japan Earthquake events, calculated on a modelled-loss basis for the risk period from January 1, 2007 to December 31, 2009.
 
In the context of the current retrocession market, SCOR considers this CAT Bond to be a cost-effective and highly secure financial mechanism which provides additional protection for the Group. The CAT Bond also enhances the diversification of the Group’s sources of retrocession and increases the visibility of its retrocession program over a period of three years. 
 
SCOR sponsored its first and second CAT bonds in 2000 and 2001. 
 
Goldman Sachs acted as the bookrunner and lead manager for the transaction.

Contact

Marie-Laurence Bouchon

Group Head of Communications

+33 (0)1 58 44 75 43

mbouchon@scor.com

 

Ian Kelly

Head of Investor Relations

+44 203 207 8561

ikelly@scor.com