PICC P&C raises $12m through Hong Kong's first insurance-linked sidecar

PICC Property and Casualty (PICC P&C) has completed a US$12m (HK$94m) issuance of notes through Great Wall Re Limited, a special purpose insurer based in Hong Kong, Artemis reported on 14 October 2026. The vehicle is a quota share reinsurance sidecar. According to the report, it is the first sidecar under Hong Kong's insurance-linked securities (ILS) regime and the first sidecar ILS from a Chinese domestic insurer.

The sidecar covers offshore wind power property risks on the Chinese mainland written by PICC companies. Investors take a proportional share of the reinsurance risk, so their returns and losses follow the profit or loss of the underlying contracts. The vehicle holds the money it raises in trust, in low-risk and liquid assets. Artemis did not name the investors or give the term.

Artemis first listed the deal in early October as a catastrophe bond, because PICC P&C had used the Great Wall Re name for a US$32.5m cat bond in 2022. It moved the transaction to its sidecar directory after the structure was clarified. All earlier Hong Kong ILS issuances were cat bonds.

Hong Kong's Financial Services and Treasury Bureau welcomed the issuance. The Insurance Authority said the deal had policy support from the mainland's National Financial Regulatory Administration. It also said it will work to allow protected cell companies as an ILS structure and will review the definition of eligible ILS investors.