The reinsurance industry got some surprisingly good news last month with a new CAT bond deal pricing. There was also the announcement of a new European product promising to increase transparency and boost capital market transactions in the near term.

French re-insurance company SCOR completed the first catastrophe risk insurance-linked securitization since the collapse of Lehman Brothers. The $200 million CAT bond, Atlas V, provides global reinsurer SCOR with multi-year property catastrophe coverage referencing hurricane and earthquake exposures in the U.S. and hurricane exposures in Puerto Rico. The deal is divided into three series of notes: $50 million Series 1 (rated 'B+' by Standard & Poor's), $100 million Series 2 (rated 'B+') and $50 million Series 3 (rated 'B'). The notes collectively offer blended coverage for subsequent events.

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