Rajah & Tann Singapore acted as local deal counsel for Toka Tū Ake EQC (the New Zealand Earthquake Commission), established in accordance with legislation to provide property insurance in New Zealand, in their NZ$225 million catastrophe bond issuance in Singapore in June 2023 offering reinsurance protection against losses from earthquake, tsunami, landslide, volcanic eruption, hydrothermal storm and flood in New Zealand.
Securing such vital property reinsurance via insurance-linked securitisation (ILS) is becoming more challenging in the face of more severe and frequent earthquakes and weather events caused by climate change. In advising on this transaction, and to secure eligibility for the MAS ILS grant, the catastrophe bond was required to be and was successfully listed on the SGX.
The deal was led by Partner Simon Goh; and supported by Partners Lee Xin Mei, Cheryl Tan and Alvin Ee, and Associates Chook Win Kit and Alicia Lim.
