Standard & Poor’s Ratings Services has assigned its preliminary credit ratings to the $200 million principal at-risk variable-rate notes series 1, 2, and 3 issued by Atlas Reinsurance V Ltd.
“The sponsor and ceding reinsurer for this transaction is SCOR Global P&C SE, a global multi-line reinsurer providing reinsurance to property and casualty, and life cedants,” S&P explained. “It is proposing to enter into this transaction to receive a multi-year source of retrocession capacity for certain U.S. hurricane and earthquake events.
“The risk modeling is based on AIR Worldwide Corporation’s East and Gulf coast tropical cyclone model version 10.0, Caribbean tropical cyclone model version 10.0, and U.S. earthquake model version 7.9. For the risk analysis, AIR used its database of insured property values as of Dec. 31, 2007 in the U.S. and Dec. 31, 2003 for Puerto Rico.”
Series 1 will cover events above $280 million on a per occurrence basis, up to a limit of $50 million. Series 2 will cover events above $200 million in excess of a $70 million inner aggregate retention on a per occurrence basis. S&P has rated both of these securities ‘B+’. Series 3 will cover second and following event losses above $25 million in excess of a $50 million inner aggregate retention on a per occurrence basis. The maximum payout per event will be $50 million minus any remaining inner retention. These notes are rated ‘B’.
Source: Standard & Poor’s – www.standardandpoors.com
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