SCOR’s $150m Atlas IX cat bond priced at lowest end of guidance


French reinsurer SCOR’s latest $150m U.S. wind, U.S. and Canada earthquake catastrophe bond Atlas IX Capital Limited (Series 2015-1) has now been priced, and it settled right at the lowest end of the initial guidance, reflecting continued investor appetite for ILS risks.

The Atlas IX Capital 2015-1 cat bond transaction launched almost a fortnight ago and sees reinsurance firm SCOR looking to secure $150m of fully-collateralized retrocessional reinsurance protection for U.S. named storm, U.S. earthquake and Canada earthquake risks. Protection will be on an industry loss trigger and aggregate basis across a four-year risk period.

The single tranche of Series 2015-1 Class A notes launched with price guidance of 7% to 7.75%, which subsequently dropped and narrowed to 7% to 7.25% earlier this week.

Now, we understand, the deal has been priced at the low-end at 7%. With an expected loss of 3.43% this puts the risk investors will be assuming at a multiple of slightly over 2 times the expected loss, a low multiple but aligned with where other recent deals are pricing.

The Atlas IX Capital Limited (Series 2015-1) catastrophe bond is expected to complete next week, at which time SCOR will have eleven cat bonds using a variation of the Atlas name listed in our directory of ILS and cat bond transactions, read all about the transaction there.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.