Taiping Re launches dual-perils CAT bond in Hong Kong

The bond features a three-year term.

Taiping Reinsurance issued Asia's first dual-perils, dual-triggers catastrophe bond (CAT bond) in Hong Kong. 

The CAT bond, valued at $35m, was issued through a special purpose insurer, Silk Road Re, and covers earthquake risks in China and hurricanes in the United States. 

The bond features a three-year term and utilises both parametric and industry loss index triggers to provide fully collateralised coverage. 

The offering attracted strong demand from institutional investors, achieving oversubscription and pricing at the lower end of the indicative range.

Yu Xiaodong, CEO of Taiping Re, noted that Hong Kong's mature financial ecosystem and regulatory support facilitated the bond's success, enabling effective risk diversification and strengthening connections between the insurance and capital markets.