This €150 million Quercus Re DAC Cat bond will come into effect on 19 July, for a period of 3 years. Its amount is 50% higher than the previous Cat bond issued by the group in 2023, which was due to expire.
A sign of investor interest in Groupama and its portfolio, the placement was made to a rapidly growing panel of 20 investors on behalf of funds specialising in Cat bonds. The bond was placed and structured by the Aon Securities* team.
This is an indemnity cover for the accumulation of events during the same annual storm season: it is triggered if the cumulative storm claims reach 290 million euros.
"This record issue in Europe in terms of amount for an Aggregate Cat bond represents effective protection for our retained climate claims. It also aims to further diversify our reinsurance capacity and demonstrates our desire to build a long-term relationship with the Insurance Linked Securities market."
Pierre Lacoste, Groupama's reinsurance director
This 144A bond issue has been approved by the Irish regulatory authorities under the Solvency 2 regime.
* Reference to the Aon Securities team means Aon Solutions Ireland Limited, which is regulated by the Central Bank of Ireland (and its affiliates).
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