Generali has reached multi-year reinsurance agreements with Lion Re DAC, a special purpose vehicle in Ireland, to cover losses from windstorms in Europe and earthquakes in Italy over a four-year term. 

Lion Re DAC has launched Series 2025-1 notes worth €200m ($226m) to support these reinsurance agreements.  

The issuance includes €125m in Class A notes for combined windstorm and earthquake coverage, and €75m in Class B notes exclusively for earthquake coverage in Italy. 

The Class A notes have a premium of 5.50% per annum, while the Class B notes have a premium of 6.00% per annum, which will be paid to investors as part of the interest on the notes. 

The terms of the issuance specify that payments on the Series 2025-1 Notes may be reduced if Generali’s losses from the specified natural disasters exceed a certain threshold. 

This marks the second Generali-sponsored catastrophe ILS instrument that integrates ESG criteria according to the insurer’s updated Green, Social and Sustainability ILS Framework.  

The transaction will help allocate capital to eligible projects, with proceeds from the issuance of the Series 2025-1 Notes to be invested in AAA-rated green notes from the EBRD. 

Aon Securities and GC Securities, a division of MMC Securities, were joint structuring agents and joint bookrunners. 
 
Generali Group general manager Marco Sesana said: “Our new catastrophe bond reaffirms Generali’s strong relationship with ILS investors, which started in 2014 with the issuance of our first catastrophe bond. ILS capital is completely integrated and complementary to our traditional reinsurance strategy.  

This first transaction, under the newly shelf programme, reflects the continued trust in the quality of our portfolio and our disciplined approach to risk management. Furthermore, it is fully aligned to our Lifetime Partner 2027 strategy, advancing our sustainability value proposition, thanks to the ESG structure at the core of this issuance.”