SGAM Covéa is sponsoring a €100 million all-natural perils catastrophe bond, Hexagon II Reinsurance DAC series 2019-1, Artemis reported.
The company will issue a single tranche of €100 million series 2019-1 notes, which will be sold to institutional investors and insurance-linked securities funds. The notes have an attachment probability of 5.9%, an expected loss of 3.65% and a price guidance of 5.15% to 5.65%, according to the report.
The catastrophe bond will offer protection to Covéa Group's insurer entities and subsidiaries, including MMA IARD SA, MAAF Assurances SA and GMF Assurances SA, against losses from windstorms and any other natural peril events across a four-year term on an ultimate net loss and per-occurrence basis. The transaction includes coverage in mainland France, Monaco and Andorra, but excludes France's overseas territories.
The transaction is expected to settle at the beginning of November.