Crédit Agricole Assurances’ P&C insurance coverage subsidiary Pacifica has made its debut enterprise into the insurance-linked securities (ILS) market with the sponsoring of a €160 million disaster bond issued by Taranis Re DAC, a particular objective automobile included in Ireland overlaying Metropolitan France, Monaco and Andorra.
The transaction was upsized, from an preliminary announcement of €100 million for the Class A Notes, assembly Pacifica’s capability aims.
The issuance, supported by Guy Carpenter, supplies protection by means of two tranches of Notes:
Class A Notes – offering €110 million of Ultimate Net Loss, Per Occurrence cowl, in respect of losses from Windstorm and Hail Storm.
Class B Notes – offering €50 million of Ultimate Net Loss, Annual Aggregate cowl, second occasion foundation, in respect of losses from Windstorm solely
The Initial Risk Spread of the notes is respectively of 8.25% for the Class A Notes and 6.00% for the Class B Notes.
Guillaume Oreckin, CEO of Pacifica commented, “We are thrilled with the constructive response from the investor group to this Cat Bond, placed with greater than a dozen capital market buyers in Europe, North America and Asia.
“With Taranis Re DAC, we are now able to access reinsurance capacity from the capital markets, efficiently complementing our existing traditional reinsurance and strengthening the resilience of our growing reinsurance cat program.”
Read extra about this Taranis Reinsurance DAC 2023 disaster bond, and all others, within the Deal Directory of our sister publication, Artemis.
