The Covéa Group has entered into a €90 million reinsurance agreement with Hexagon Re, an Irish Designated Activity Company, providing windstorm cover across Metropolitan France starting January 1st, 2018.
The transaction will cover the annual aggregate cost of European wind-related damage exceeding predetermined thresholds, to the Group’s French subsidiaries on an indemnity trigger. To provide fully collateralized protection, Hexagon Re has issued two €45 million classes of notes in a Rule 144A offering, maturing in January 2022, with each class addressing a different risk level.
« This is the first indemnity trigger, aggregate basis cat bond issuance addressed specifically at covering windstorm across Metropolitan France. With this successful transaction, Covéa reaffirms its innovation capabilities. The Group has now further diversified its access to worldwide reinsurance capacity, within a secure legal and financial framework. This initiative confirms the Group’s strategy with respect to reinsurance protection », Pierre Michel, Head of Group reinsurance at Covéa, stated.
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