Pacifica, Property and Casualty insurance subsidiary of Crédit
Agricole Assurances, successfully places its first Cat Bonds
Press release
Paris, December 8,
2023
Pacifica, Property and Casualty insurance
subsidiary of Crédit Agricole Assurances, successfully places its
first Cat Bonds
Pacifica announced the successful
placement of €160 million Cat Bond covering French Windstorm and
Hail storm on the Insurance-Linked-Securities (ILS)
market.The transaction is part of Pacifica’s
reinsurance diversification strategy.
On December 7, 2023, Pacifica made its debut
venture onto the ILS market through the sponsoring of a €160
million Cat Bond issued by Taranis Re DAC, a special purpose
vehicle incorporated in Ireland covering Metropolitan France,
Monaco and Andorra.
The transaction was upsized, from an initial
announcement of €100 million for the Class A Notes, meeting
Pacifica's capacity objectives. The Initial Risk Spread of the
notes is respectively of 8.25% for the Class A Notes and 6.00% for
the Class B Notes.
The Cat Bond will provide reinsurance protection
to Pacifica as part of its overall catastrophe reinsurance
programme. It diversifies Pacifica’s sources of reinsurance
protection against catastrophes and provides a multi-year
protection running from January 2024 until December 2027.
Guillaume Oreckin, CEO of Pacifica stated: "We
are thrilled with the positive response from the investor community
to this Cat Bond, placed with more than a dozen capital market
investors in Europe, North America and Asia. With Taranis Re DAC,
we are now able to access reinsurance capacity from the capital
markets, efficiently complementing our existing traditional
reinsurance and strengthening the resilience of our growing
reinsurance cat program".
Pacifica has entered into two four-year
reinsurance agreements with Taranis Re DAC. The issuance, supported
by Guy Carpenter, provides coverage through two tranches of
Notes:
- Class A Notes:
providing €110 million of Ultimate Net Loss, Per Occurrence cover,
in respect of losses from Windstorm and Hail Storm.
- Class B Notes:
providing €50 million of Ultimate Net Loss, Annual Aggregate cover,
second event basis, in respect of losses from Windstorm only.
Forward-looking statements
This press release includes forward-looking
statements, assumptions, and information about Pacifica’s financial
condition, results, business, strategy, plans and objectives,
including in relation to Pacifica’s current or future projects.
These statements are sometimes identified by the
use of the future tense or conditional mode, or terms such as
“estimate”, “believe”, “anticipate”, “expect”, “have the
objective”, “intend to”, “plan”, “result in”, “should”, and other
similar expressions.
It should be noted that the achievement of these
objectives, forward-looking statements, assumptions and information
is dependent on circumstances and facts that arise in the
future.
No guarantee can be given regarding the
achievement of these forward-looking statements, assumptions and
information. These forward-looking statements, assumptions and
information are not guarantees of future performance.
Forward-looking statements, assumptions and information (including
on objectives) may be impacted by known or unknown risks,
identified or unidentified uncertainties and other factors that may
significantly alter the future results, performance and
accomplishments planned or expected by Pacifica.
Therefore, any assessments, any assumptions and,
more generally, any figures presented in this press release will
necessarily be estimates based on evolving analyses, and encompass
a wide range of theoretical hypotheses, which are highly
evolutive.
In addition, such forward-looking statements,
assumptions and information are not “profit forecasts” within the
meaning of Article 1 of Commission Delegated Regulation (EU)
2019/980.
Pacifica has no intention and does not undertake
to complete, update, revise or change these forward-looking
statements, assumptions and information, whether as a result of new
information, future events or otherwise.
Disclaimer
This communication does not constitute or form
part of any offer or invitation to sell or issue or any
solicitation of any offer to purchase or subscribe for the
securities mentioned herein in any jurisdiction. The securities
mentioned herein have not been, and will not be, registered under
the Securities Act, and may not be offered or sold in the United
States except pursuant to an exemption from the registration
requirements of the Securities Act. Taranis Reinsurance DAC and the
securities mentioned are not and will not be registered under the
U.S. Investment Company Act of 1940, as amended.
Rule 144A offerings are offerings of securities
conducted on a private placement basis for the purposes of the U.S.
Securities Act of 1933, as amended (the “Securities Act”) and that
limit initial distribution and secondary sales of the securities to
entities that are Qualified Institutional Buyers as defined in Rule
144A under the Securities Act. The offering of securities in a Rule
144A offering does not require registration of the issuer or the
securities with the U.S. Securities Exchange Commission.
Catastrophe bond transactions provide sponsoring
insurers and reinsurers protection against catastrophe risks
through the release to the sponsor of a portion or the whole
principal amount upon the occurrence of pre-defined events (namely
triggers). Triggers can be determined in different ways: for
Pacifica, an indemnity trigger provides for payment once the losses
from specific natural events are higher than a certain specified
amount provided for in the terms of the transaction.
About Crédit Agricole
AssurancesCrédit Agricole Assurances, France’s largest
insurance Group, unites together Crédit Agricole’s insurance
subsidiaries. The Group offers a range of savings, retirement,
health, personal protection and property insurance products and
services. They are distributed by the Crédit Agricole’s banks in
France and in nine other countries around the world by financial
advisers and multi-line insurance agents. The Crédit Agricole
Assurances companies serve individuals, professionals, farmers and
businesses. Crédit Agricole Assurances has 5,700 employees. Its
premium income at the end of 2023 amounted to €35.3 billion
(IFRS).www.ca-assurances.com
Press contacts Nicolas Leviaux +33 (0)1 57 72 09
50 / 06 19 60 48 53Julien Badé +33 (0)1 57 72 93 40/ 07 85 18 68
05service.presse@ca-assurances.fr |
Debt Investor Relations contactsYael Beer-Gabel
+33 (0)1 57 72 66 84Victoire-Emmanuelle Prud’homme +33 (0)1 43 23
90 66Valentin Lecomte +33 (0)1 43 23 59
76relations.investisseurs@ca-assurances.fr |
|
Cat Bond Investor Relations contactAlexandre
Pennetier +33 (0)1 53 74 35
34alexandre.pennetier@ca-pacifica.fr |
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