Atlas Capital DAC (Series 2025-1)

This new Atlas Capital DAC Series 2015-1 catastrophe bond will be the nineteenth from France-headquartered global reinsurance company SCOR to use the Atlas name and the twentieth cat bond from the company since the year 2000.

For this Atlas Capital 2025 cat bond, SCOR is again using its Ireland-based designated activity company named Atlas Capital DAC, which it used for the last two issues as well.

Atlas Capital DAC is set to offer investors a $200 million single tranche of Series 2025-1 Class A catastrophe bonds notes that will be sold and the proceeds used to collateralize a retrocessional reinsurance agreement between the vehicle and SCOR SE, Artemis has learned from sources.

This Atlas Capital DAC 2025-1 catastrophe bond will benefit SCOR by providing the reinsurance company a roughly three-year source of annual aggregate, weighted industry loss trigger based retro reinsurance protection, running through to the end of May 2028.

The covered perils and regions for this cat bond will be U.S. named storms (inc. DC, Puerto Rico & Virgin Islands), Caribbean named storms, as well as U.S. (inc. DC, Puerto Rico & Virgin Islands) and Canada earthquakes, and European windstorms, sources said.

We understand that PCS will be the industry-loss index reporting agent for named storm and earthquake risks, while PERILS will report on European windstorm loss events.

There are different index value attachment points for North America and Europe, while event deductibles are also to be enforced for a loss event to qualify and aggregate towards the attachment.

The single currently $200 million tranche of Series 2025-1 cat bond notes that Atlas Capital DAC will issue come with an initial attachment probability of 4.08%, an initial base expected loss of 3.29% and are being offered to cat bond funds and investors with price guidance in a range from 7.5% to 8%, we are told.

Update 1:

We’ve learned that SCOR’s target for this new Atlas Capital 2025-1 catastrophe bond has risen, with now between $200 million and as a much as $240 million of retrocessional reinsurance being sought.

At the same time, the price guidance for the notes has lowered, with an updated range of 6.75% to 7.5% being offered to investors.

Update 2:

SCOR finalised the details of its latest catastrophe bond to be an issue of $240 million of Series 2025-1 notes by Atlas Capital DAC, so upsized the amount of retro it will provide by 20%.

We’re told the $240 million of Series 2025-1 cat bond notes that Atlas Capital DAC will issue have now been priced to pay investors a spread of 7.25%, so almost 7% below the initial guidance mid-point.