Atlas Capital DAC (Series 2026-1)

France-headquartered global reinsurance company SCOR has returned to sponsor a new Atlas Capital DAC Series 2026-1 catastrophe bond that will be the twentieth cat bond to use the Atlas name from the company and the twenty-first in total we have tracked that is sponsored by SCOR since the year 2000.

For this Atlas Capital 2026 cat bond, SCOR will once again use its Ireland-based designated activity company named Atlas Capital DAC, now making it four cat bond sponsorships through this structure.

Initially, SCOR is targeting $75 million of multi-year collateralized catastrophe retrocession through this new cat bond sponsorship, with the multi-peril regional focus being the same as its 2025 issuance, being the US, Caribbean, Canada and Europe.

Atlas Capital DAC is offering an initially $75 million single tranche of Series 2026-1 Class A catastrophe bonds notes that will be sold to investors and the proceeds used to collateralize a retrocessional reinsurance agreement between the vehicle and SCOR SE, Artemis understands from sources.

This Atlas Capital DAC 2026-1 catastrophe bond is designed to provide SCOR with a roughly three-year source of annual aggregate, weighted industry loss trigger based retro reinsurance protection, running to maturity in early June 2029.

The covered perils and regions for this cat bond will be named storms in the U.S. and Caribbean (inc. DC, Puerto Rico & Virgin Islands), as well as earthquakes in the U.S. (inc. DC, Puerto Rico & Virgin Islands) and Canada, and windstorms in Europe, we are told, the same as the 2025 issuance.

Also like that 2025 cat bond, we understand PCS will be the industry-loss index reporting agent for named storm and earthquake risks, while PERILS will report on European windstorm loss events for the transaction.

There are different index value attachment points for each of the North American and European perils, while event deductibles are also to be enforced in order for a loss event to qualify and aggregate towards the attachment points over the annual aggregate risk periods.

The single currently $75 million tranche of Atlas Capital DAC Series 2026-1 cat bond notes come with an initial attachment probability of 3.44%, an initial base expected loss of 3.13% and they are being offered to cat bond funds and investors with price guidance in a range from 6% to 6.5%, we are told.

Update 1:

SCOR is now targeting lower pricing for this Atlas Capital DAC Series 2026-1 cat bond.

The offering remains $75 million in size, but the price guidance for the notes has been reduced to an updated range of 5.5% to 6%.

Update 2:

SCOR successfully priced the new Atlas Capital DAC Series 2026-1 catastrophe bond at the low-end of initial guidance, securing its targeted $75 million of retrocessional protection from the deal.

The $75 million Class A tranche of Atlas Capital DAC Series 2026-1 cat bond notes were priced to pay investors an initial risk interest spread of 6%, so at the low-end of initial guidance.