Seaside Re (Series 2026-14)

This $15 million Seaside Re (Series 2026-14) 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 continues to play a role as a key facilitator for 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.

Hannover Re’s 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 segregated accounts and series of private cat bond deals.

This latest issuance is of $15 million of notes through a Seaside Re (Series 2026-14) tranche, which are exposed to U.S. property catastrophe risks and have a due date of January 15th 2027.

As with every private cat bond issuance, the proceeds from the sale of each tranche of notes that have been privately placed with 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 or sometimes shorter collateralized reinsurance or industry loss warranty (ILW) transaction entered into around the 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 certain cases.