LI Re (Series 2024-1)

German reinsurance company Hannover Re has again used its Bermuda domiciled reinsurance transformer vehicle Kaith Re Ltd. to issue a new $5 million LI Re 2024-1 private cat bond, acting on behalf of its segregated account named LI Re.

Hannover Re has facilitated the transaction, helping the unnamed cedent to access sources of capital markets backed reinsurance capacity.

Using its Bermuda domiciled reinsurance transformer and segregated account vehicle Kaith Re Ltd., which was acting on behalf of its segregated account named LI Re, exactly $5,003,710 million of LI Re 2024-1 private cat bond notes have been issued and placed privately with qualified investors, we have learned.

This new slightly over $5 million LI Re 2024-1 private cat bond, transforms and securitizes an underlying reinsurance or retrocession related contract, with risk contained in the segregated account, and these notes are scheduled for maturity on July 15th 2025.

In recent years, most LI Re private cat bonds issued with the assistance of Hannover Re have provided cover for California earthquake risks. But in this case detail is more limited and we’re not certain of the exposure, although assume it is property cat risk related.

This new $5m of LI Re Series 2024-1 private cat bond notes are now listed on the Bermuda Stock Exchange (BSX) as Section V – Insurance Related Securities, while Ocorian Securities (Bermuda) Ltd. has acted as the listing sponsor, and the notes were sold to qualified institutional investors.