Kaith Re Ltd., the transformer automobile owned by world reinsurance agency Hannover Re, has issued one other non-public disaster bond, with simply over $10 million of Seaside Re (Series 2024-61) notes bought to traders.
Hannover Re has been serving to market contributors and its shoppers with the matching of reinsurance dangers to capital markets and insurance-linked securities (ILS) traders in a extra environment friendly method for quite a lot of years now and its Kaith Re construction has issued lots of the non-public cat bonds we’ve tracked.
In 2023, Hannover Re facilitated the issuance of $49 million of notes throughout 4 Seaside Re non-public cat bond points and one $15 million issuance beneath the LI Re account of Kaith Re.
Thus far in 2024, we’d seen $59 million of Seaside Re private cat bonds that came to market in January.
Now, with one other $10 million from this Collection 2024-61 word issuance, Hannover Re’s Seaside Re non-public cat bond program has $69 million in offers that we’ve seen and tracked thus far this 12 months.
Particulars 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.
This $10 million Seaside Re (Collection 2024-61) non-public disaster bond, or cat bond lite, transaction has been issued by world reinsurance firm Hannover Re’s Class 3 Bermuda-based insurer and segregated accounts automobile Kaith Re Ltd.
Hannover Re operates, partially, as a facilitator to assist traders entry reinsurance associated danger and returns in securitized kind, in addition to serving to its cedents to entry the capital markets for complementary reinsurance capital.
The reinsurer does this by performing as a danger transformer and facilitator for 144A cat bonds, non-public disaster bonds and different collateralised reinsurance associated insurance-linked securities (ILS). Hannover Re additionally cedes danger by way of its retrocession program, a few of which can be securitized utilizing Kaith Re.
Hannover Re makes use of Bermuda domiciled Class 3 insurer and reinsurance transformer automobile Kaith Re Ltd. to concern its non-public cat bonds, beneath the Seaside Re and Li Re collection.
This issuance is of simply barely over $10 million of notes from a Seaside Re (Collection 2024-61) tranche, that are uncovered to U.S. property disaster dangers and have a due date of July fifteenth 2025.
As with all of those non-public cat bond offers, the proceeds from the sale of every tranche of privately positioned notes to cat bond traders 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 can characterize 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 mid-year 2024 reinsurance renewals, or one other non-public association remodeled to be matched with capital market investor urge for food. At occasions, in addition they present traders with securitized entry to different retrocessional dangers ceded by Hannover Re.
Together with this simply barely over $10 million new Seaside Re 2024-61 non-public cat bond, Artemis’ complete for cat bond lite issuance for 2024 thus far has now reached almost $385 million.
Final 12 months, for 2023, Artemis recorded $642 million of personal disaster bond issuance.
You may learn all about this new Seaside Re (Series 2024-61) non-public disaster bond transaction in our intensive Deal Directory.
