LI Re (Series 2025-1)

Hannover Re, the German global reinsurer, has used its Bermuda domiciled reinsurance transformer vehicle Kaith Re Ltd. to issue a new $9.525 million LI Re 2025-1 private catastrophe bond, acting on behalf of its segregated account named LI Re.

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

Using the Bermuda domiciled reinsurance transformer and segregated account company Kaith Re Ltd., which was acting on behalf of its segregated account named LI Re, exactly $9.525 million of LI Re 2025-1 private cat bond notes have been issued and placed privately with qualified investors, we have learned.

This new $9.525 million LI Re 2025-1 private cat bond, transforms and securitizes an underlying reinsurance or retrocession related contract, with the risks contained in the segregated account, and these notes are scheduled for maturity on July 15th 2026.

The majority of LI Re private cat bonds issued with the assistance of Hannover Re had provided cover for California earthquake risks. But details became more limited since 2024 and we’re not certain of the exposure, although assume it is property cat risk related.

Last year, the Kaith Re structure issued one LI Re 2024-1 private cat bond sized at roughly $5 million and with the same maturity date, so this could be a renewal and upsizing of that arrangement.

This new $9.525m of LI Re Series 2025-1 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.

Since 2017, the Kaith Re structure has only issued a single LI Re private catastrophe bond each year, but has also issued a number of cat bonds under the Seaside Re series of deals of which there have been seven so far in 2025.