Groupama innovates in the ILS markets with a Cat Bond dedicated to Convective Storms to protect its annual losses

13 January 2026

Issue of the first Cat Bond dedicated to Convective Storms

Groupama announces the issuance of the first catastrophe bond (“Cat Bond”) on the Insurance Linked Securities (“ILS”) markets specifically dedicated to Hail risk, structured as an aggregate indemnity.

This innovative transaction aims to protect annual losses on property and motor portfolios related to this climate peril in metropolitan France.

This Cat Bond, Quercus II Re DAC, amounts to 120 million euros, effective from January 1, 2026, for a duration of 2 years, and is triggered if Group’s losses exceed €470 million per year.

The coverage was placed and structured by the Aon Securities team, with the transaction attracting a broad panel of investors specializing in Cat Bonds.

“This issuance, a world first, demonstrates the group’s capacity for innovation and highlights the importance of partnership relations with the ILS market, which enable Groupama to structure effective coverage against Hail losses” 
Pierre Lacoste, Reinsurance Director of Groupama Group

 

This 144A-type bond issuance has received approval from the Irish regulatory authorities under the Solvency II regime.

 

Financial Release