China - China Re first Chinese company to issue CAT bond
Source: Asia Insurance Review | Aug 2015
China Re has successfully issued a catastrophe bond on the international market, becoming the first Chinese company to do so.
The bond was issued through Panda Re, a special purpose vehicle set up in Bermuda, to raise US$50 million to cover risks incurred from earthquakes in China, reported the Xinhua News Agency citing a China Re statement.
The sponsor of the bond is China Property & Casualty Reinsurance (China Re P&C), a wholly-owned subsidiary of China Re.
The issuance marked the country’s “breakthrough” in securing insurance risks, paving the way for a diversified risk-sharing mechanism for catastrophe insurance by making use of the capital market, China Re said in a statement.
China is speeding up efforts to establish a catastrophe insurance system to protect life and property against natural disasters such as earthquakes, floods and hurricanes.