The Hong Kong Insurance Authority welcomed Hong Kong’s first insurance-linked securities issuance structured as a sidecar, broadening a market that has previously hosted catastrophe bond transactions. PICC Property & Casualty Company Limited issued the USD 12 million instrument, equivalent to about HKD 94 million, through Great Wall Re Limited to protect offshore wind farm properties in Mainland China. The authority linked the transaction to policy support from the National Financial Regulatory Administration. It also plans to facilitate the introduction of protected cell companies as an insurance-linked securities structure and review the definition of eligible investors to support a more active trading market.
Hong Kong Insurance Authority welcomes first local sidecar issuance, a USD 12 million insurance-linked security
The Hong Kong Insurance Authority welcomed the city’s first sidecar issuance, a USD 12 million insurance-linked security protecting offshore wind farm properties in Mainland China. The authority plans to facilitate protected cell company structures and review which investors are eligible to participate in the market.