€90 million catastrophe bond issued by Hexagon Re for the benefit of Covéa

Dec 18, 2017, par Covea

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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This announcement is not an offer to sell or a solicitation of an offer to buy the securities mentioned herein in any jurisdiction where such offer or sale would be unlawful. Securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons unless they are registered under the Securities Act or an exemption  from the registration requirements of the Securities Act is available.  Any public offering of securities to be made in the United States or any other jurisdiction may only be made by means of a prospectus that may be obtained from the issuer or the selling security holder and that will contain detailed information about the company and management, as well as financial statements. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.

This announcement is directed only at (a) persons who are outside the United Kingdom, (b) persons in the United Kingdom who have professional experience in matters related to investments and who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”), (c) high net worth entities falling within Article 49(2)(a) to (d) of the Order, and (d) other persons to whom it may be lawfully communicated (all such persons together being referred to as “relevant persons”). Any investment or investment activity to which this announcement relates is available only to, and will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents.

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