Kaith Re Ltd., the transformer car owned by international reinsurance agency Hannover Re, has issued seven sequence of personal disaster bond notes, all Seaside Re (Sequence 2025), for a complete of $84 million of notes bought to buyers.
Hannover Re stays a key facilitator to ILS market contributors and its purchasers, via the matching of reinsurance dangers to capital markets and insurance-linked securities (ILS) buyers in a extra environment friendly method and its Class 3 Bermuda-based insurer and segregated accounts car Kaith Re Ltd. has issued lots of the personal cat bonds we’ve tracked through the years.
In 2023, Hannover Re facilitated the issuance of $49 million of notes throughout 4 Seaside Re personal cat bond points and one $15 million issuance below the LI Re account of Kaith Re.
In 2024, Kaith Re issued $59 million of Seaside Re private cat bonds in January. and an additional $10 million from a Series 2024-61 note issuance in August, taking Hannover Re’s Seaside Re personal cat bond program issuances to $69 million final 12 months.
Now, for 2025, the 12 months has begun with a bigger issuance from Kaith Re, as seven sequence of Seaside Re 2025 personal cat bond notes have come to market, totalling $84 million of danger capital.
Particulars of all of those will be seen in the Artemis Deal Directory, which you can filter to only show private cat bonds and cat bond lite transactions.
Hannover Re makes use of Bermuda domiciled Class 3 insurer and reinsurance transformer car Kaith Re Ltd. to difficulty its personal cat bonds, below the Seaside Re and Li Re sequence.
Seven sequence of notes have been issued in January, bringing $84 million of personal cat bond notes to institutional buyers.
Every sequence is issued below Kaith Re’s segregated account named Seaside Re and all seven have a due date of January fifteenth 2026 and have been privately positioned with certified buyers and listed on the Bermuda Inventory Alternate (BSX).
All seven sequence of notes cowl US dangers, probably property disaster reinsurance of their focus and given the due dates we assume they are going to be one-year contracts underpinning the chance switch preparations.
The seven new Seaside Re personal cat bond points and their sizes will be seen beneath:
As in each personal cat bond issuance, the proceeds from the sale of every tranche of privately positioned notes to cat bond buyers will fund the collateral necessities to help an underlying reinsurance or retrocession settlement, for whichever ceding re/insurer is the final word beneficiary of the safety.
These cat bond lite offers sometimes symbolize investor or ILS fund participation in a reinsurance or retrocession tower, a one-year collateralized reinsurance or trade loss guarantee (ILW) transaction entered into across the January 2025 reinsurance renewals, or one other personal association reworked to be matched with capital market investor urge for food. They’ll additionally present buyers with securitized entry to different retrocessional dangers ceded by Hannover Re, in some instances.
Lately, Hannover Re additionally matured these 5 earlier Seaside Re issuances, a few of which had been in extension, permitting buyers to redeem any excellent principal: Seaside Re 2021-31; Seaside Re 2021-41; Seaside Re 2022-21; Seaside Re 2022-31; and Seaside Re 2024-1.
Nevertheless, extensions of maturity proceed for some others, with one other six excellent sequence of Seaside Re notes all now having their maturity dates prolonged to April fifteenth 2025, totalling $52 million throughout these tranches: Seaside Re 2021-23; Seaside Re 2022-23; Seaside Re 2024-11; Seaside Re 2024-12; Seaside Re 2024-13; and Seaside Re 2024-31.
These prolonged notes are assumed to be uncovered to disaster losses from their respective years of issuance, leading to extensions of maturity to permit for ongoing improvement of doubtless related disaster occasions.
It’s encouraging to see a bigger $84 million Seaside Re issuance to start out the 12 months from Hannover Re’s Kaith Re construction.
Throughout excellent and prolonged Seaside Re personal cat bond points, there are actually $146 million of issuance left presently.
Non-public cat bond issuance tracked by Artemis reached just over $455.5 million for 2024, which was effectively down on the most important personal cat bond years of 2017 and 2021, when over a billion {dollars} of those offers had been seen.
You possibly can learn all about this new Seaside Re (Series 2024-61) personal disaster bond transaction in our in depth Deal Directory.
