Panda Re Ltd

The Chairman of Chinese reinsurance firm China Re visited Singapore recently where he discussed issues related to the reinsurers work in the Singapore re/insurance market, including discussions on the potential for cooperation between China Re and Singapore in the area of catastrophe bonds.

GC Securities, the investment banking and insurance-linked securities (ILS) specialist arm of reinsurance broker Guy Carpenter, has successfully structured and placed the first catastrophe bond covering Chinese risks, Panda Re Ltd. (Series 2015-1).

China Property & Casualty Reinsurance Company (China Re P&C) sees the recently completed $50m Panda Re Ltd. (Series 2015-1) catastrophe bond as a “successful first-step” into alternative risk transfer and the capital markets for the re/insurer.

The first catastrophe bond covering risks in China, Panda Re Ltd. (Series 2015-1), has now completed successfully, raising $50m for the sponsor state-owned reinsurance firm China Re, which was the lower end of the sponsors target size for the deal.

Another milestone has been reached for the catastrophe bond and insurance-linked securities (ILS) market, with the introduction of the first cat bond covering Chinese perils. The Panda Re Ltd. (Series 2015-1) deal covers Chinese quake risks on an indemnity basis.