Hannover Re’s Kaith Re issues $10m Seaside Re 2024-61 private cat bond

Kaith Re Ltd., the transformer vehicle owned by global reinsurance firm Hannover Re, has issued another private catastrophe bond, with just over $10 million of Seaside Re (Series 2024-61) notes sold to investors.

Hannover Re has been helping market participants and its clients with the matching of reinsurance risks to capital markets and insurance-linked securities (ILS) investors in a more efficient manner for a number of years now and its Kaith Re structure has issued many of the private cat bonds we’ve tracked.

In 2023, Hannover Re facilitated the issuance of $49 million of notes across four Seaside Re private cat bond issues and one $15 million issuance under the LI Re account of Kaith Re.

So far in 2024, we’d seen $59 million of Seaside Re private cat bonds that came to market in January.

Now, with another $10 million from this Series 2024-61 note issuance, Hannover Re’s Seaside Re private cat bond program has $69 million in deals that we’ve seen and tracked so far this year.

Details of these can 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 (Series 2024-61) private catastrophe bond, or cat bond lite, transaction has been issued by global reinsurance company Hannover Re’s Class 3 Bermuda-based insurer and segregated accounts vehicle Kaith Re Ltd.

Hannover Re operates, in part, as a facilitator to help investors access reinsurance related risk and returns in securitized form, as well as helping its cedents to access the capital markets for complementary reinsurance capital.

The reinsurer does this by acting as a risk transformer and facilitator for 144A cat bonds, private catastrophe bonds and other collateralised reinsurance related insurance-linked securities (ILS). Hannover Re also cedes risk through its retrocession program, some of which may be securitized using Kaith Re.

Hannover Re uses Bermuda domiciled Class 3 insurer and reinsurance transformer vehicle Kaith Re Ltd. to issue its private cat bonds, under the Seaside Re and Li Re series.

This issuance is of just slightly over $10 million of notes from a Seaside Re (Series 2024-61) tranche, which are exposed to U.S. property catastrophe risks and have a due date of July 15th 2025.

As with all of these private cat bond deals, the proceeds from the sale of each tranche of privately placed notes to cat bond investors will fund the collateral requirements to support an underlying reinsurance or retrocession agreement, for whichever ceding re/insurer is the ultimate beneficiary of the protection.

These cat bond lite deals can represent investor or ILS fund participation in a reinsurance or retrocession tower, a one-year collateralized reinsurance or industry loss warranty (ILW) transaction entered into around the mid-year 2024 reinsurance renewals, or another private arrangement transformed to be matched with capital market investor appetite. At times, they also provide investors with securitized access to other retrocessional risks ceded by Hannover Re.

Including this just slightly over $10 million new Seaside Re 2024-61 private cat bond, Artemis’ total for cat bond lite issuance for 2024 so far has now reached almost $385 million.

Last year, for 2023, Artemis recorded $642 million of private catastrophe bond issuance.

You can track private catastrophe bond issuance by year using this interactive chart. Use the key to include or exclude types of transaction.

You can read all about this new Seaside Re (Series 2024-61) private catastrophe bond transaction in our extensive Deal Directory.