Seaside Re (Series 2026-61)

Class 3 Bermuda-based insurer and segregated accounts vehicle Kaith Re Ltd., the structure owned by Hannover Re, the global reinsurance company, has issued a $14.94 million Seaside Re (Series 2026-61) private catastrophe bond, or cat bond lite, transaction.

Hannover Re is one of the key facilitators for issuance in the ILS market, for investors and for its clients, assisting them with the matching of reinsurance risks to capital markets and insurance-linked securities (ILS) investors in a more efficient manner through private cat bond deals like this.

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 $14.94 million Seaside Re 2026-61 issuance is the ninth issuance under the Seaside Re segregated account program of private catastrophe bonds to come to market in 2026 so far.

This new issuance saw a $14.94 million tranche of notes offered under a Seaside Re (Series 2026-61) arrangement.

We believe these notes are likely to be exposed to U.S. property catastrophe risks, as every deal under the Seaside Re name has been so far.

The Seaside Re Series 2026-61 private cat bond notes have a due date of July 15th 2027, which might suggest they feature the securitization of a one-year arrangement from around the mid-year reinsurance renewals.

As with all private cat bond issuance we track, the proceeds from the sale of this tranche of notes that have been privately placed with cat bond investors will be used to 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.