PICC P&C’s new Great Wall Re catastrophe bond said to be a $12m issuance

We’ve learned that the new Great Wall Re Limited catastrophe bond issuance is $12 million in size, so presumably will provide an equivalent amount of capital markets backed reinsurance to the sponsoring Chinese domestic insurer, PICC Property and Casualty Company Limited.

On Monday we revealed that PICC Property and Casualty Company Limited appeared to have returned to sponsor its second catastrophe bond, using its Hong Kong domiciled special purpose insurer Great Wall Re Limited for the second time.

Information was extremely limited at the time, simply that a new transaction under Great Wall Re had taken place. But one new piece of information has now emerged, which is that the tranche of floating rate cat bond notes issued by Great Wall Re is said by sources to be $12 million in terms of the issuance size.

It’s still thought that these understood to be $12 million of catastrophe bond notes issued by PICC P&C’s special purpose insurer Great Wall Re represent a roughly one year reinsurance arrangement for the sponsor, given their scheduled maturity of September 30th 2027.

We cannot confirm any further details at this time, but still assume these are likely to provide cover for a type of natural catastrophe risk for the sponsor, presumably with the covered area located within China.

We will update you as and when further details are available.

Remember, PICC P&C sponsored its debut catastrophe bond deal back in late 2022, a $32.5 million Great Wall Re Limited cat bond deal.

That first Great Wall Re cat bond provided the sponsor with a roughly three-year source of fully-collateralized earthquake reinsurance in China on an indemnity trigger and per-occurrence basis, funded by investors from the insurance-linked securities (ILS) market.

We have added this new transaction to our extensive catastrophe bond Deal Directory under an entry for Great Wall Re Limited (2026). We will update the entry as any new information emerges.