Atlas Reinsurance X sidecar demonstrates SCOR’s access to capital


French reinsurer SCOR has now issued a press release on its recently launched Atlas Reinsurance X Ltd. fully collateralized reinsurance sidecar, which Artemis covered last week. The reinsurer says the successful launch of the sidecar further demonstrates its access to capital.

Interestingly SCOR’s press release names the sidecar Atlas X Reinsurance Ltd. (Atlas X), rather than Atlas Reinsurance X Ltd. It’s not clear why this would be, as the $55.5m listed vehicle and notes on the Irish stock exchange are definitely named Atlas Reinsurance X Ltd.

SCOR’s said that the placement of the fully collateralized retrocessional reinsurance sidecar will provide the group with an additional $55.5m of three-year protection from a new panel of investors. This is in line with SCOR’s capital diversification policy and ‘Optimal Dynamic’ strategic plan.

SCOR explains; “Atlas X is an Irish-domiciled special purpose reinsurance vehicle. Atlas X and SCOR Global P&C have entered into a quota share retrocession agreement, effective 1 January 2014, under which Atlas X will reinsure a proportional share of SCOR’s diversified property catastrophe portfolios in specific countries.”

SCOR says that the protection of its capital is a strategic axis for the group, with regular use of capital market transactions, now including fourteen deals to date.

Victor Peignet, CEO of SCOR Global P&C, commented on the sidecar; “I am pleased with the successful take-up of our sidecar offering. This demonstrates SCOR’s access to financial markets and the faith of investors in SCOR’s underwriting abilities. Whilst we are no stranger to the collateralised reinsurance market, this is the first time we have arranged a cat-specific protection via a quota share sidecar solution. It marks an important step in adding new long-term partners to our reservoir of cat capacity, as set out in “Optimal Dynamics””.

Denis Kessler, Chairman and Chief Executive Officer of SCOR, added; “SCOR is a leader in using alternative capital to protect its balance sheet. It is only natural that we should add a sidecar to our other innovative protections. A “Robust Capital Shield” is one of SCOR’s four cornerstones and this transaction demonstrates the importance we place on making that shield comprehensive and diversified.”

Also read:

SCOR involved in alternative capital across the ILS spectrum: Kessler

SCOR launches $55.5m Atlas Reinsurance X sidecar

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