French reinsurance company SCOR with UBS has launched a three-year €150m Nat Cat financial coverage facility taking the form of an event-driven guaranteed equity as a contingent capital solution.
SCOR has signed a natural catastrophe financial coverage facility in the form of contingent capital equity line with UBS.
Under the transaction, SCOR will benefit from a contingent €150m equity line, which would be available in two separate tranches of €75m each.
The drawdown on facility may result in an aggregate increase in share capital of up to €150m (including issuance premium), in respect of which it has entered into a firm subscription commitment with UBS.
SCOR chairman and CEO Denis Kessler said that this agreement demonstrates the company’s position at the forefront of innovative risk transfer solutions, an attractive business area which is a key value contributor presented in its new strategic plan ‘Strong Momentum’.
In addition, the transaction will give rise to issuance of around 9.5 million warrants issued by the company to UBS, each warrant giving UBS right to subscribe for two new SCOR shares.