Atlas Re VII deal protects reinsurer against US hurricanes, earthquakes and European windstorms
French reinsurer SCOR has tapped the capital markets for £227m of catastrophe cover by launching a new catastrophe bond.
The bond, issued by Ireland-based special purpose vehicle Atlas Reinsurance VII, provides SCOR with $60m protection against US hurricanes and earthquakes, and €130m($167m) of cover against European windstorms.
The bond matures on 31 December 2015.
Aon Benfield Securities, Natixis and BNP Paribas managed the transaction and the book on the deal. Standard & Poor’s rates the class A notes, which cover US hurricane and earthquake, at BB-, and the class B notes, which cover European windstorm, at BB.
The class A US risk notes pay out when market losses hit a certain point. The market loss level is determined by data from Property Claim Services.
The class B European risk notes pay out on a per-occurrence basis using the PERILS index.
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