Taiping Reinsurance Company (Taiping Re), a Hong Kong based reinsurer that is part of the state-backed China Taiping Insurance Group, is in the process of sponsoring its first catastrophe bond, with a Silk Road Re Limited transaction set to be issued out of Hong Kong, Artemis can reveal.
We’re told that this Silk Road Re Limited catastrophe bond has been in the market for a few weeks, but is being relatively privately offered and will consist of private notes, so we understand is not a full Rule 144A cat bond issuance.
It’s the latest cat bond to come out of Hong Kong since the country enacted its own insurance-linked securities (ILS) regulatory regime and began offering a grant scheme to attract sponsors.
China Taiping is a state-supported enterprise, so this new cat bond from Hong Kong fits the strategy of attracting Chinese sponsors to look to the capital markets for efficient reinsurance capital using its ILS regulatory regime.
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