*GC Securities, a division of MMC Securities LLC, a U.S. registered broker-dealer and member FINRA/NFA/SIPC, announced the placement of USD 300,000,000 Series 2018 Principal At-Risk Variable Rate Notes through a newly formed insurance special purpose vehicle domiciled in the United Kingdom, Atlas Capital UK 2018 PLC, to benefit SCOR.
The bond provides four years of annual aggregate protection for any named storm in the United States (including Puerto Rico and the U.S. Virgin Islands); any earthquake in the United States (including Puerto Rico) and Canada; and any windstorm event in certain parts of Europe. It is the first 144A cat bond issuance under the new UK Risk Transformation Regulations 2017.
GC Securities served as the sole structurer and bookrunner.
PRINCIPAL AT-RISK VARIABLE RATE NOTES - PROFILE
Size (USD) |
Covered Perils | Scheduled Maturity |
Initial Annual Modelled Expected Loss |
Initial Coupon |
$300,000,000 |
North America: U.S. named storms; and U.S and Canada earthquake; European Europe windstorm |
June 7, 2022 |
3.24% (Base Case) 3.33% (Sensitivity Case) |
Permitted Investment Yield + 6.00% |
Des Potter, Managing Director, GC Securities,** said "We are delighted to have successfully completed the first ever 144A cat bond to be issued under the UK Risk Transformation Regulations 2017. This pioneering transaction had strong investor support and a relatively smooth execution, due in part to the responsiveness of the Prudential Regulation Authority (PRA). The decision by SCOR, a leading global reinsurer, to use the new UK regime was a bold decision and is a major boost for the competitiveness of the UK (re)insurance industry."
David Priebe, Vice Chairman, Guy Carpenter, added, "We are honored to have been selected to act as the sole structurer and bookrunner by SCOR on this pioneering transaction. New ground was broken with this transaction and I am pleased that the investment of Guy Carpenter in the London Market Group's ILS Taskforce is bearing fruit, which will ultimately benefit our clients as we broaden their risk transfer options."
*Securities or investments, as applicable, are offered in the United States through GC Securities, a division of MMC Securities LLC, a US registered broker-dealer and member FINRA/NFA/SIPC. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. **Securities or investments, as applicable, are offered in the European Union by GC Securities, a division of MMC Securities (Europe) Ltd. (MMCSEL), which is authorized and regulated by the Financial Conduct Authority, main office 25 The North Colonnade, Canary Wharf, London E14 5HS. Reinsurance products are placed through qualified affiliates of Guy Carpenter & Company, LLC. MMC Securities LLC, MMC Securities (Europe) Ltd. and Guy Carpenter & Company, LLC are affiliates owned by Marsh & McLennan Companies. This communication is not intended as an offer to sell or a solicitation of any offer to buy any security, financial instrument, reinsurance or insurance product.