SCOR's Bold Move: Securing the Future with Atlas Capital DAC Series 2025-1

In the ever-evolving landscape of reinsurance, SCOR, the Paris-based giant, has once again demonstrated its strategic acumen by successfully sponsoring the Atlas Capital DAC Series 2025-1 catastrophe bond. This move is not just a financial maneuver but a testament to SCOR's commitment to risk management and capital protection, aligning perfectly with its Forward 2026 strategic plan. The bond, which provides a multi-year risk transfer capacity of up to $240 million, is a bold step towards securing SCOR's financial stability in the face of peak natural perils.

The issuance of the Atlas Capital DAC Series 2025-1 catastrophe bond is a masterstroke in SCOR's risk management strategy. By transferring risks such as U.S. named storms, Caribbean named storms, U.S. and Canada earthquakes, and European windstorms to the capital markets, SCOR ensures that its solvency ratio remains within the optimal range of 185%-220%. This is crucial for achieving the company's goal of an annual economic value growth rate of 9%, as it allows SCOR to focus on its core business activities without the constant threat of large-scale natural disasters impacting its financial performance.



The use of the Atlas Capital DAC vehicle for this issuance is a strategic decision that offers several benefits. Firstly, it allows for a faster and more cost-effective issuance process. The vehicle, created in 2023 for the Series 2023-1 cat bond issuance, can be utilized to sponsor cat bonds covering various perils in both Life & Health (L&H) and Property & Casualty (P&C) lines of business. This flexibility is crucial for SCOR's risk management strategy, as it allows the company to tailor its risk transfer solutions to specific needs and market conditions.

Secondly, the use of Atlas Capital DAC aligns with SCOR's Forward 2026 strategic plan, which identifies risk partnerships—including capital market solutions like cat bonds—as one of the Group’s levers for value creation. The size of the Series 2024-1 issuance is in line with the Group’s cat exposures and with its retrocession strategy under the Forward 2026 plan. This strategic alignment ensures that SCOR's capital protection measures are integrated into its broader business objectives, enhancing overall risk management and financial stability.

The issuance of the Atlas Capital DAC Series 2025-1 catastrophe bond is a clear indication of SCOR's commitment to maintaining its market position while adapting to evolving risks and opportunities. The bond provides SCOR with a three-year source of annual aggregate, weighted industry loss trigger-based retro reinsurance protection, running through to the end of May 2028. This protection allows SCOR to better manage its risks and allocate capital more efficiently, supporting its goal of achieving a 9% annual economic value growth rate.

In conclusion, SCOR's issuance of the Atlas Capital DAC Series 2025-1 catastrophe bond is a strategic move that aligns with its Forward 2026 plan. By transferring risks to the capital markets and using the Atlas Capital DAC vehicle, SCOR ensures its financial stability and supports its growth targets. This move is a testament to SCOR's commitment to risk management and capital protection, and it sets a benchmark for other reinsurance companies to follow. As SCOR continues to navigate the complexities of the reinsurance market, its strategic decisions will undoubtedly shape the future of the industry.