Seaside Re (Series 2026-71)

Global reinsurance company Hannover Re’s Class 3 Bermuda-based insurer and segregated accounts vehicle Kaith Re Ltd. has issued a $20 million Seaside Re (Series 2026-71) private catastrophe bond, or cat bond lite, transaction.

Hannover Re is a key facilitator for ILS market participants and for its clients, through assisting them with 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 a $20 million tranche of notes through a Seaside Re (Series 2026-71) offering, which we believe are exposed to U.S. property catastrophe risks as every deal under the Seaside Re name has been. The notes have a due date of March 1st 2027.

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.