SCOR successfully sponsors a new catastrophe bond, Atlas Capital
DAC Series 2023-1
Press ReleaseMay 26, 2023 - N° 11
SCOR successfully sponsors a new
catastrophe bond, Atlas
Capital DAC Series 2023-1
SCOR has successfully sponsored a new
catastrophe bond (“cat bond”), Atlas Capital DAC Series 2023-1,
which will provide the Group with multi-year risk transfer capacity
of USD 75 million to protect itself against named storms in the
U.S. and earthquakes in the U.S. and Canada, as well as European
windstorms. The risk period for Atlas Capital DAC Series 2023-1
will run from June 1st, 2023, to May 31st, 2026. The transaction
has received the approval of the Irish regulatory authorities. The
cat bond offering integrates ESG related considerations to support
investors' due diligence.
The cat bond was priced on May 17th, 2023, and
closed on May 26th, 2023. Despite a significant market hardening
since the end of 2022, Atlas Capital DAC Series 2023-1 was well
received and benefited from high investor demand. GC Securities1
acted as Sole Structuring Agent and Sole Bookrunner for the deal.
Willkie Farr and Walkers advised SCOR as legal counsels.
Atlas Capital DAC Series 2023-1 is an aggregate,
index-based trigger cat bond issued by Atlas Capital DAC, a
multi-arrangement special purpose vehicle approved in Ireland under
Solvency II. This new vehicle may be utilized by the Group to
sponsor future cat bonds in order to secure protection against
various perils in both L&H and P&C in a more dynamic and
cost-effective manner.
The size of the cat bond was adapted in line
with the significant reduction of SCOR’s cat exposures over the
last 18 months. SCOR is now in an ideal position to harvest the
benefits from an attractive cat reinsurance environment in 2024 and
beyond. It also confirms SCOR’s commitment to regular cat bond
issuances in line with its past strategy.
Maintenance of an efficient capital shield is a
strategic cornerstone of the SCOR group, which deploys a full array
of capital market solutions.
Jean-Paul
Conoscente, CEO of SCOR P&C,
comments: “SCOR is pleased to turn once again to the ILS market and
secure multi-year protection against peak natural perils. Cat bonds
are an integral part of capital protection for SCOR, which has been
a regular sponsor for more than two decades. The market recognized
and supported our commitment to the asset class, and we are
delighted with the strong investor demand. A novelty with Atlas
2023 is the establishment of a new type of vehicle which may be
used for future cat bonds across both P&C and L&H, and we
are grateful to the Irish regulatory bodies for their support and
responsiveness during this transaction.”
*
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Contact details
Media RelationsAlexandre
Garciamedia@scor.com
Investor RelationsYves
Cormier ycormier@scor.com
www.scor.com
LinkedIn: SCOR | Twitter: @SCOR_SE
SCOR, a Global Tier 1
Reinsurer
SCOR, a leading global reinsurer, offers its
clients a diversified and innovative range of reinsurance and
insurance solutions and services to control and manage risk.
Applying “The Art & Science of Risk”, SCOR uses its
industry-recognized expertise and cutting-edge financial solutions
to serve its clients and contribute to the welfare and resilience
of society.
SCOR offers its clients a Tier 1 reinsurer
rating from Standard & Poor’s, AM Best, Moody’s and Fitch.
The Group generated premiums of EUR 19.7 billion
in 2022 and serves clients in more than 160 countries from its 35
offices worldwide.
For more information, visit: www.scor.com
Forward-looking statements
This press release includes forward-looking
statements, assumptions, and information about SCOR’s financial
condition, results, business, strategy, plans and objectives,
including in relation to SCOR’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 SCOR.
In particular, it should be noted that the full
impact of the Covid-19 crisis on SCOR’s business and results cannot
be accurately assessed, in particular given the uncertainty related
to the evolution of the pandemic, to its effects on health and on
the economy, and to the possible effects of future governmental
actions or legal developments in this context.
In addition, the full impact of the Russian
invasion and war in Ukraine on SCOR’s business and results cannot
be accurately assessed at this stage, given the uncertainty related
both to the magnitude and duration of the conflict, and the
consequential impacts.
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.
These points of attention on forward-looking
statements are all the more essential that the adoption of IFRS 17,
which is a new accounting standard, results in significant
accounting changes for SCOR – the impact of which may not be fully
assessed ab initio (see below).
Information regarding risks and uncertainties
that may affect SCOR’s business is set forth in the 2022 Universal
Registration Document filed on April 14, 2023, under number
D.23-0287 with the French Autorité des marchés financiers (AMF)
posted on SCOR’s website www.scor.com.
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.
SCOR 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. Atlas Capital 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: an
industry loss trigger provides for payment once the losses to the
industry generated by specific natural events (typically) are
higher than a certain specified amount provided for in the terms 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.
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