Press release30 May 2024 - N°
09
SCOR successfully sponsors a new
catastrophe bond, Atlas Capital DAC Series 2024-1
SCOR has successfully sponsored a new
catastrophe bond (“cat bond”), Atlas Capital DAC Series 2024-1,
which will provide the Group with multi-year risk transfer capacity
of USD 175 million to protect itself against named storms in the US
and earthquakes in the US and Canada. The risk period for Atlas
Capital DAC Series 2024-1 will run from 1 June 2024 to 31 May 2027.
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 24 May 2024 and
issued on 30 May 2024. Atlas Capital DAC Series 2024-1 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 2024-1 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 vehicle was created in 2023 for the Series 2023-1
cat bond issuance, and it may be utilized by the Group to sponsor
cat bonds covering various perils in both L&H and P&C. The
benefits of this vehicle were visible this year, as it allowed for
a faster and more cost-effective issuance process.
The size of the Series 2024-1 issuance is in
line with the Group’s cat exposures and with its retrocession
strategy under the Forward 2026 strategic plan, which identifies
risk partnerships – including capital market solutions like cat
bonds – as one of the Group’s levers for value creation.
François de Varenne, Group CFO and
Deputy CEO of SCOR, comments: “SCOR is pleased to sponsor
a new cat bond this year, securing multi-year protection against
peak natural perils from the ILS market. We are delighted by the
strong investor demand, as cat bonds remain an integral part of
SCOR’s capital protection under the Forward 2026 strategic plan. We
are also very pleased with the efficiency gains made by reusing
Atlas Capital DAC for a second year.”
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SCOR, a leading global reinsurer As a
leading global reinsurer, SCOR 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. The
Group generated premiums of EUR 19.4 billion in 2023 and serves
clients in around 160 countries from its 35 offices worldwide.
For more information, visit: www.scor.com |
Media Relations Alexandre Garciamedia@scor.com
Investor RelationsThomas
Fossardtfossard@scor.com Follow us
on LinkedIn |
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Forward-looking statements
This press release may include 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 inflation and geopolitical risks including but not
limited to the Russian invasion and war in Ukraine on SCOR’s
business and results cannot be accurately assessed.
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.
Information regarding risks and uncertainties
that may affect SCOR’s business is set forth in the 2023 Universal
Registration Document filed on 20 March 2024, under number
D.24-0142 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
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1 GC Securities is a division of MMC Securities LLC, a US
registered broker-dealer and member of FINRA/NFA/SIPC.
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