Seaside Re (Series 2025-1)

This $16.5 million Seaside Re (Series 2025-1) private catastrophe bond, or cat bond lite transaction, has been issued by global reinsurance company Hannover Re’s Class 3 Bermuda-based insurer and segregated accounts vehicle Kaith Re Ltd.

Hannover Re remains a key facilitator to ILS market participants and its clients, through the matching of reinsurance risks to capital markets and insurance-linked securities (ILS) investors in a more efficient manner and its Class 3 Bermuda-based insurer, reinsurance transformer and segregated accounts vehicle Kaith Re Ltd. has issued many of the private cat bonds we’ve tracked over the years, under the Seaside Re and Li Re series.

This issuance is of $16.5 million of notes from a Seaside Re (Series 2025-1) tranche, which are exposed to U.S. property catastrophe risks and have a due date of January 15th 2026.

As in every private cat bond issuance, the proceeds from the sale of each tranche of privately placed notes to cat bond investors will fund the collateral requirements to support an underlying reinsurance or retrocession agreement, for whichever ceding re/insurer is the ultimate beneficiary of the protection.

These cat bond lite deals typically represent investor or ILS fund participation in a reinsurance or retrocession tower, a one-year collateralized reinsurance or industry loss warranty (ILW) transaction entered into around the January 2025 reinsurance renewals, or another private arrangement transformed to be matched with capital market investor appetite. They can also provide investors with securitized access to other retrocessional risks ceded by Hannover Re, in some cases.