SV SparkassenVersicherung (SV) has spotlighted its new strategic partnership with Japan’s Zenkyoren as a cornerstone of its first catastrophe bond, , a $100 million issuance that reflects a growing trend of collaborative and diversified global risk transfer in the insurance-linked securities (ILS) space.As we reported last week, Liongate Re DAC was successfully priced and finalised to provide Japanese mutual Zenkyoren with $100 million in aggregate earthquake reinsurance on an indemnity trigger basis, while also providing a source of German parametric triggered quake reinsurance cover for entities of the Sparkassen-Finanzgruppe.The cat bond structure reflects both firms’ long-term orientation and emphasis on financial resilience, with SV SparkassenVersicherung (SV)’s CEO, Dr Andreas Jahn, framing the transaction as a first step toward “subsequent issuances” and improved efficiency through capital markets.We’ve previously explained that this new cat bond is innovative for two reasons.

Firstly, as we understand it is the only catastrophe bond to ever provide parametric earthquake protection covering risks in Germany and a very rare European parametric quake deal in catastrophe bond, or similar, format.Secondly, is the way it has provided a shared limit for two ceding beneficiaries, one being Japanese mutual Zenkyoren, the second being an entity of the German Sparkassen-Finanzgruppe (SV Sparkassenversicherung ) with that reinsurance limit also being shared across an indemnity aggregate cover and a parametric cover as well.“Structured together with our reinsurance broker Guy Carpenter Securities, the bond provides three years of retrocessional earthquake reinsurance, covering losses across Germany on a parametric basis and from Japan on an indemnity basis,” SV explained.

Speaking on the transaction, SV Chief Executive Officer (CEO), Dr Andreas Jahn said: “We are pleased to announce the successful completion of our debut catastrophe bond, Liongate Re – an innovative transaction that enhances our reinsurance program and stands for our partnership with Zenkyoren.“This milestone expands our access to alternative private market risk transfer, reducing reliance on traditional reinsurance.Over time, we expect subsequent issuances to provide alternative forms of protection and improve overall risk transfer efficiency.

Developing our capability in this market supports SV’s ongoing commitment to innovation and optimization of risk management.” Tsuyoshi Kawagoe, General Manager of Reinsurance Office, Zenkyoren, also commented: “The foundations of our partnership with SV are built on our shared values and principles.The issuance of Liongate Re marks the beginning of our new business relationship with SV and our close collaboration on this issuance has led to our mutual benefit.The cat bond has been designed to seamlessly complement our existing cat bond franchise and provide additional support to protect Zenkyoren against Japanese earthquake events.” As a reminder, you can read all about this new catastrophe bond and every other cat bond deal in the Artemis Deal Directory..

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