A brand new $5 million non-public disaster bond issued by German reinsurance firm Hannover Re’s Bermuda-domiciled car Kaith Re Ltd. has come to mild, with the LI Re (Series 2024-1) deal assumed to be offering privately positioned collateralized and securitized disaster reinsurance capability for an unknown sponsor.
Hannover Re has facilitated the transaction, serving to the unnamed cedent to entry sources of capital markets backed reinsurance capability.
Utilizing its Bermuda domiciled reinsurance transformer and segregated account car Kaith Re Ltd., which was performing on behalf of its segregated account named LI Re, precisely $5,003,710 million of LI Re 2024-1 non-public cat bond notes have been issued and positioned privately with certified traders, we’ve realized.
Hannover Re has facilitated the issuance of quite a few non-public cat bonds below its LI Re and Seaside Re applications, all issued utilizing Kaith Re in Bermuda. Particulars of which can be found by filtering our extensive Deal Directory by type of transaction.
Hannover Re frequently assists traders in accessing reinsurance associated danger and returns in securitized codecs, and cedents to entry the capital markets, by utilizing buildings to offer danger transformer and facilitation for 144a cat bonds, non-public disaster bonds comparable to this new deal, and different insurance-linked securities (ILS) preparations in fronted collateralized reinsurance kind.
The worldwide reinsurer is a key actor within the ILS market, placing its experience, balance-sheet and rankings energy to work in serving to to broaden the ILS market and facilitate the sleek switch of cedent danger to capital markets traders and ILS funds.
This new barely over $5 million LI Re 2024-1 non-public cat bond, transforms and securitizes an underlying reinsurance or retrocession associated contract, with danger contained within the segregated account, and these notes are scheduled for maturity on July fifteenth 2025.
Lately, most LI Re non-public cat bonds issued with the help of Hannover Re have offered cowl for California earthquake dangers. However on this case element is extra restricted and we’re not sure of the publicity, though assume it’s property cat danger associated.
This new $5m of LI Re Sequence 2024-1 non-public cat bond notes are actually listed on the Bermuda Inventory Alternate (BSX) as Part V – Insurance coverage Associated Securities, whereas Ocorian Securities (Bermuda) Ltd. has acted because the itemizing sponsor, and the notes have been offered to certified institutional traders.
Including this new non-public cat bond to our market information and analytics, 2024 private catastrophe bond issuance has reached almost $263.25 million to date this 12 months, in line with Artemis’ intensive cat bond market information.
You can analyse private cat bond issuance by year in our chart that breaks down all our tracked issuance by type here. Click on on the chart beneath to entry an interactive model:
Issuance of personal disaster bonds has been rising in 2024, however stays far beneath file ranges. We don’t see many of those transactions although, so solely have information on these the place some data has turn into out there to us.
2017 stays the file 12 months for personal cat bonds that we’ve tracked, at simply over $1.12 billion of issuance recorded by Artemis.
Learn extra about this new LI Re (Series 2024-1) non-public disaster bond in our intensive cat bond Deal Directory.
You possibly can filter our Deal Directory to view only private cat bond deals.
