On November 29, 2007, SCOR entered into a multi-year property catastrophe (“CAT”) retrocession agreement with Atlas Reinsurance IV Limited (“Atlas IV"), which provides EUR 160 million of additional reinsurance coverage for SCOR and its affiliates. 

 

This CAT bond, whose losses are determined through modelling, covers first and subsequent Europe Windstorm or Japan Earthquake events for the risk period from November 30, 2007 to December 31, 2010.

 

In the context of the current retrocession markets, this CAT bond is a cost-effective and highly secure financial mechanism. It provides additional protection for the Group’s peak natural catastrophe risk exposures and further strengthens its capital shield. This CAT bond also enhances the diversification of the Group’s sources of retrocession and increases the visibility of the retrocession program over the next three years.

 

Atlas IV is a special-purpose company incorporated under the laws of Ireland. This retrocession agreement is fully funded by proceeds received by Atlas IV from the issuance of the CAT bond, already fully placed with institutional investors. 

 

Goldman Sachs acted as the sole book runner and lead manager for the transaction. In addition, Benfield Advisory acted as a financial advisor to SCOR.

 

SCOR is a frequent issuer of Insurance Linked Securities, with five transactions completed to date: Atlas Reinsurance I, II, III and IV and Helix, originally issued by Converium, which is now a part of SCOR SE.