SCOR Comments on Atlas Cat Bond

France’s SCOR group noted that it has successfully sponsored a new catastrophe bond. The French reinsurer entered into a multi-year property catastrophe retrocession agreement with Atlas Reinsurance III p.l.c., a special purpose reinsurance company incorporated under the laws of Ireland in order to provide €120 million ($158 milion) of additional reinsurance coverage for SCOR and its affiliates (See IJ web site Dec. 22).

“The retrocession agreement is fully funded by proceeds received by Atlas III from the issuance of this CAT Bond, already fully purchased in a private placement to institutional investors,” said the bulletin.

The CAT Bond provides coverage for second and subsequent Europe Windstorm or Japan Earthquake events, calculated on a modeled-loss basis for the risk period from January 1, 2007 to December 31, 2009.

SCOR said that “inIn the context of the current retrocession market,” it “considers this CAT Bond to be a cost-effective and highly secure financial mechanism which provides additional protection for the Group. The CAT Bond also enhances the diversification of the Group’s sources of retrocession and increases the visibility of its retrocession program over a period of three years.”

SCOR sponsored its first and second CAT bonds in 2000 and 2001.