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 gentle, 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 buyers, we have now discovered.
Hannover Re has facilitated the issuance of quite a few non-public cat bonds beneath 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 often assists buyers in accessing reinsurance associated danger and returns in securitized codecs, and cedents to entry the capital markets, by utilizing constructions to offer danger transformer and facilitation for 144a cat bonds, non-public disaster bonds reminiscent of this new deal, and different insurance-linked securities (ILS) preparations in fronted collateralized reinsurance type.
The worldwide reinsurer is a key actor within the ILS market, placing its experience, balance-sheet and scores energy to work in serving to to broaden the ILS market and facilitate the sleek switch of cedent danger to capital markets buyers 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 supplied 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 Change (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 buyers.
Including this new non-public cat bond to our market knowledge and analytics, 2024 private catastrophe bond issuance has reached almost $263.25 million to date this 12 months, in accordance with Artemis’ intensive cat bond market knowledge.
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 under to entry an interactive model:
Issuance of personal disaster bonds has been growing in 2024, however stays far under document ranges. We don’t see many of those transactions although, so solely have knowledge on these the place some data has change into accessible to us.
2017 stays the document 12 months for personal cat bonds that we have now 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’ll be able to filter our Deal Directory to view only private cat bond deals.
