LI Re (Series 2025-2)

Hannover Re, the global reinsurance company from Germany, has used its Bermuda domiciled segregated accounts and reinsurance transformer vehicle Kaith Re Ltd. to issue a new $15 million LI Re Series 2025-2 private catastrophe bond arrangement.

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

For this latest private insurance-linked securities (ILS) arrangement from Hannover Re’s Bermuda domiciled reinsurance transformer and segregated account company Kaith Re Ltd., acting on behalf of its segregated account named LI Re, has issued $15 million of LI Re Series 2025-2 private cat bond notes that have been placed privately with qualified investors.

This new $15 million LI Re Series 2025-2 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 October 15th 2026, we understand.

Prior to 2024, the majority of LI Re private cat bonds issued with the assistance of Hannover Re had provided reinsurance protection for California earthquake risks. However, details became more limited for LI Re private cat bonds since that year and we’re not certain of the exposure, although make the assumption it is property cat risk related.

This new $15m issuance of LI Re Series 2025-2 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.