Some $131.25 million of Hannover Re’s Seaside Re personal disaster bonds have had their maturity dates prolonged additional into 2024, as uncertainty continues over lots of the 2021, 2022 and 2023 classic offers.
One $7.5 million transaction from 2020 has been allowed to mature in current days, Artemis understands.
Within the final couple of years, we’ve got seen repeated extensions of maturity for a few of the Seaside Re personal disaster bond transactions, that had been issued by German reinsurance agency Hannover Re’s segregated accounts car, Kaith Re Ltd.
Nearly $159 million of Seaside Re private cat bonds saw their maturity extended back in December 2022, after which $39 million of the extended 2022 vintage Seaside Re catastrophe bonds were later allowed to mature, presumably because it was deemed they weren’t going to face any losses from the disaster occasions that they had been uncovered to.
Which left $119.75 million of Seaside Re personal cat bonds, throughout 2020, 2021, and 2022 vintages, nonetheless prolonged and nonetheless uncovered to attainable losses, with simply one of many 2022 collection allowed to mature.
After that, $109.75 million of those Seaside Re cat bonds had their maturity dates extended further through to October 15th 2023.
Then yet one more deal was allowed to mature and $101.25 million of those remaining Seaside Re cat bonds had their maturity dates extended by a further three months, to January 15th 2024.
Now, we’ve seen yet one more maturity, as a $7.5 million Seaside Re (Series 2020-41) personal cat bond association has now been allowed to mature.
Which reduces the full nonetheless prolonged to $131.25 million and all the personal Seaside Re cat bond collection listed under have now had their maturity dates set to July fifteenth 2024, Artemis has discovered.
This additional extension of maturity throughout these collection of personal cat bond notes will be sure that their protection stays obtainable for any additional improvement of disaster loss occasions they is likely to be uncovered to.
As higher readability emerges over the quantum of related loss occasions, their capital can both be returned to buyers, or any realised losses be paid (ought to these collection face them).
For the 2023 classic Seaside Re cat bond notes, as we all know all of them cowl US dangers we assume the menace might be aggregated extreme climate losses, given there weren’t any main named storm losses or quakes in that calendar yr.
For the Collection 2022 personal cat bond tranches from Hannover Re’s Seaside Re program, we assume that they’re at-risk of potential losses associated to hurricane Ian, on condition that was the biggest disaster loss occasion of the final yr and it continues to develop at the moment.
For the remaining 2020 and 2021 classic Seaside Re personal cat bonds, they’re assumed to be uncovered to disaster losses from their respective years of issuance, given nearly each Seaside Re cat bond has offered its reinsurance or retro protection throughout a single yr danger interval at most.
Hannover Re is likely one of the most essential facilitators within the disaster bond market, serving to buyers entry reinsurance associated returns in securitized kind, and ceding purchasers to entry the capital markets.
The reinsurer acts as a danger transformer and facilitator for 144A cat bonds, personal disaster bonds and different insurance-linked securities (ILS).
In 2023, Hannover Re’s Kaith Re car issued 4 Seaside Re personal cat bonds, for $49 million of danger capital. Kaith Re additionally issued one $15 million LI Re (Series 2023-1) cat bond, which is uncovered to US earthquakes.
In 2024 thus far, Hannover Re’s Kaith Re car has issued five series of Seaside Re private cat bonds totalling $59 million and the current and first ever parametric cloud outage cyber cat bond, the $13.75 million Cumulus Re deal.
In line with Artemis’ extensive data on the disaster bond market, private cat bond issuance reached $642 million for full-year 2023 and so far in 2024 has reached almost $173 million.
Particulars of each personal disaster bond we’ve tracked may be present in our Deal Directory, which you’ll be able to filter by kind of transaction making it simpler to view only private cat bond issuances.
