Scor has launched the first UK catastrophe bond by sponsoring a USD 300 million Atlas Capital UK 2018 PLC (Series 2018 ISPV 1) transaction.

Returning to the capital market and launching its first cat bond in over two years, Scor chose the UK as its preferred ILS domicile.

Scor's previous cat bonds, which provide a source of property catastrophe retrocessional reinsurance, have tended to be domiciled in Ireland. This move, by a major global reinsurer, is seen as a positive endorsement for the UK's new ILS regulatory and tax regime which came into force earlier this year. For further details of the regime, please see the articles in our previous Bulletins.

To issue the cat bond Scor has registered Atlas Capital UK 2018 PLC as an insurance special purpose vehicle to be the transformer for and issuer of a single tranche of Series 2018 ISPV 1 notes. Atlas Capital UK 2018 will provide Scor with multi‑peril retrocessional reinsurance protection over a four year period protecting the reinsurer against named storms and earthquakes in the US and Canada as well as windstorms in Europe.

Scor has said that its decision to choose the UK to issue the cat bond demonstrates its "capacity to innovate" and its confidence in the UK ILS regime. In finalising the deal Scor noted how responsive and helpful the UK regulator has been.

It will be interesting to see whether this move by Scor encourages other issuers to look to the UK as an ILS domicile.