Insurance Group Australia (IAG) has sponsored an AUD$75
million ($53 million) catastrophe bond in Singapore, the first
in the jurisdiction.
The Orchard ILS deal is sponsored by IAG as part of its 2019
catastrophe aggregate reinsurance protection. Orchard ILS is
providing IAG with AUD$75 million of annual aggregate cover
over a three-year term by issuing catastrophe bond notes which
have been sold to ILS investors. The proceeds are used to
collateralise part of IAG’s catastrophe aggregate
As it’s the first of its kind in Singapore, the
challenge was to work out the procedure to set up a special
purpose reinsurance vehicle (SPRV) efficiently as the structure
has not been tested before. But with this experience, Singapore
regulators aim to ease the...