LI Re (Series 2014-1)

This private ILS transaction saw Kaith Re a Bermuda Class 3 insurer and segregated accounts company, owned by Hannover Re, on behalf of its segregated cell LI Re, transform a property catastrophe reinsurance contract from an unknown cedent into an insurance-linked security which was sold to a single ILS investor.

The underlying reinsurance contract does not cover Hannover Re’s risks, rather this deal sees Hannover Re utilising the transformation facilities that its Class 3 insurer provides to offer a cedent a private cat bond facility to effect the deal, between the cedent and the investor.

The LI Re ILS issuance program and the $10.37m of Series 2014-1 notes issued have been listed on the Bermuda Stock Exchange.