SCOR successfully sponsors a new USD 250 million catastrophe bond, Atlas Capital UK 2019
SCOR has successfully sponsored a new catastrophe bond (“cat bond”), Atlas Capital UK 2019 PLC, which will provide the Group with multi-year risk transfer capacity of USD 250 million to protect itself against named storms in the U.S., earthquakes in the U.S. and Canada, and windstorms in Europe.
PUBLISHED AT 08:20 AM CEST
The risk period for Atlas Capital UK 2019 will run from June 1, 2019, to May 31, 2023. The transaction has received the approval of the Prudential Regulatory Authority (PRA) and the UK regulatory authorities.
The cat bond was priced on May 24, 2019 and closed on May 31, 2019. GC Securities(1) acted as Sole Structuring Agent, GC Securities and Aon acted as Joint Bookrunners for the deal and Clifford Chance advised SCOR.
The capital shield policy is a strategic axis for SCOR. The Group has regularly used capital market solutions for this purpose, having completed 16 transactions since 1999, including cat bonds, sidecars, mortality bonds and innovative contingent capital protections.
Jean-Paul Conoscente, CEO of SCOR Global P&C, comments: “Having been the first company to successfully sponsor a cat bond under the UK ILS regime in 2018(2) and continuing its policy of diversifying capital protection tools, SCOR has returned to the London Market to issue Atlas Capital UK 2019. The strength of support for this transaction enabled SCOR to upsize it despite current market conditions – which is reflective of the quality of SCOR’s franchise and reputation as an innovative and long-term sponsor. The SCOR team is grateful to the PRA and the other UK regulatory authorities involved for the speed and efficiency they have once again demonstrated in their review and approval of the transaction.”
(1) GC Securities is a division of MMC Securities LLC, a U.S. registered broker-dealer and member of FINRA/NFA/SIPC.
(2) See Press release distributed on June 1, 2018.
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