Walkers Ireland office is delighted to have advised on Orange Capital Re DAC, a new catastrophe bond programme structured through an Irish Solvency II MA SPV. This deal was named Finance Dublin's Deal of the Year 2022 for Debt Capital Markets: Insurance-Linked Securities.
Orange Capital Re DAC is the first multi-arrangement catastrophe bond programme sponsored by NN Re (Netherlands) N.V. and the second multi-arrangement catastrophe bond programme to be approved by the Central Bank of Ireland.
Orange Capital Re DAC reflects NN Group's commitment towards the transition to a sustainable economy and the growing appetite amongst investors in the Insurance Linked Securities (ILS) market for the integration of environmental, societal and governance (ESG) factors in such transactions. NN Group is a proud member of the NZIA and is included in the Dow Jones Sustainability Indices (ranking amongst the top 10% of the sector).
As a large international financial services company, responsible investment is an important element of NN Group’s strategy. NN Group integrates environmental, societal and governance factors in many of its processes. In its underwriting process, NN Group applies specific policies for sensitive sectors following its risk assessment which indicates increased or unacceptable risks on the basis of sanctions regulations and compliance risks. For example, there is no exposure in the cat bond to industrial properties such as large chemicals, mining, coal, oil refineries. In addition, there is no commercial greenhouse exposure in the initial portfolios of Orange Capital Re DAC.
With the modelling of the exposure, NN Re deliberately included not only the more traditional winter storms as perils but also the recently launched severe convective storms as modelled by RMS, making the portfolio more resilient to the effects of climate change.
Ireland is the long-standing European jurisdiction of choice for locating special purpose vehicles for catastrophe bond transactions and Walkers Ireland is delighted to have advised on this significant transaction the Insurance Linked Securities (ILS) market. Congratulations to the deal team which also included Cadwalader, Wickersham & Partners, Swiss Re Capital Markets, Aon Securities and BNYM.
"Walkers was delighted to advise on this award-winning deal, the second multi-arrangement catastrophe bond programme to be approved by the Central Bank of Ireland. With Ireland firmly recognised as the European jurisdiction of choice for alternative risk transfer, our team is proud to have been involved in this significant deal for the ILS market and to have advised on all Solvency II cat bonds structured through Ireland to date," commented Noeleen Ruddy, Partner, ILS Group.