Seaside Re (Series 2019-22) – Full details:
This is the second Seaside Re private ILS transaction to come to light in January 2019, adding to the glut of December 2018 deals, as reinsurance firm Hannover Re continues to act as an ILS transformer and facilitator using its Kaith Re Ltd. segregated accounts vehicle.
This $10 million Seaside Re (Series 2019-22) private catastrophe bond, or cat bond lite, transaction, has been issued by Kaith Re Ltd., helping an investor to access U.S. property catastrophe risks in a securitised, cat bond note form.
For this 2019-22 issuance, Kaith Re Ltd. acted on behalf of its segregated account named Seaside Re to issue a single $10 million tranche of Series 2019-22 private cat bond notes for the investor(s). The notes have been issued pursuant to the Seaside Re bond program, which was originally established and listed in 2017.
The single $10 million tranche of Series 2019-22 notes issued by segregated account Seaside Re are due January 15th 2020, so represent a one year collateralized reinsurance or industry loss warranty (ILW) transaction, as are most common with private cat bonds. This is the same due-date as the other Seaside Re 2019 and all of the 2018 transactions, suggesting this is another renewal of a layer within the same reinsurance or retro program that Hannover Re has securitised for a client.
The Seaside Re bond program provides investors with access to U.S. property catastrophe risks, but further details of the exact nature of this transaction and the reinsurance or retrocessional coverage it provides are unavailable at this time. It is possible that these Seaside Re transactions are a way for investors to participate in Hannover Re’s own retro program.
This $10 million tranche of Series 2019-22 notes issued by Seaside Re have been admitted for listing on the Bermuda Stock Exchange (BSX) as Section V – Insurance Related Securities and have been placed with qualified ILS investors.
This is the fifteenth tranche of notes issued through the Seaside Re program from Hannover Re’s Kaith Re reinsurance transformer vehicle since 2017.