Hannover Re facilitates $15m LI Re 2025-2 private cat bond via Kaith Re

A new private catastrophe bond has been issued by German reinsurance company Hannover Re’s Bermuda-based structure Kaith Re Ltd., with $15 million of LI Re (Series 2025-2) notes issued to support what is assumed to be a privately placed collateralized and securitized catastrophe reinsurance arrangement for an unknown sponsor.

Notably, this is the second private catastrophe bond under the LI Re series that we’ve seen issued by Hannover Re’s reinsurance vehicle Kaith Re in 2025, the first time more than one LI Re transaction has been issued in a calendar year since 2016.

We reported on a $9.525 million LI Re 2025-1 private cat bond back in July.

Kaith Re has also issued eight Seaside Re private cat bonds in 2025 so far, that we have sourced some details of.

Since 2014, Hannover Re has facilitated the issuance of numerous private cat bonds under its LI Re and Seaside Re programs, all issued using Kaith Re in Bermuda.

Details of all of them can be found by filtering our extensive Deal Directory by type of transaction.

For this latest private insurance-linked securities (ILS) arrangement from Hannover Re’s Bermuda domiciled reinsurance transformer and segregated account company Kaith Re Ltd., acting on behalf of its segregated account named LI Re, has issued $15 million of LI Re Series 2025-2 private cat bond notes that have been placed privately with qualified investors.

This new $15 million LI Re Series 2025-2 private cat bond, transforms and securitizes an underlying reinsurance or retrocession related contract, with the risks contained in the segregated account, and these notes are scheduled for maturity on October 15th 2026, we understand.

Prior to 2024, the majority of LI Re private cat bonds issued with the assistance of Hannover Re had provided reinsurance protection for California earthquake risks. However, details became more limited for LI Re private cat bonds since that year and we’re not certain of the exposure, although make the assumption it is property cat risk related.

This new $15m issuance of LI Re Series 2025-2 private cat bond notes are now listed on the Bermuda Stock Exchange (BSX) as Section V – Insurance Related Securities, while Ocorian Securities (Bermuda) Ltd. has acted as the listing sponsor, and the notes were sold to qualified institutional investors.

Hannover Re regularly helps investors to access reinsurance related risk and returns in securitized formats, and cedents to access the capital markets for protection, by using structures to provide risk transformer and facilitation for 144a cat bonds, private catastrophe bonds such as this deal, and other insurance-linked securities (ILS) arrangements in fronted collateralized reinsurance form.

The global reinsurer is a key actor in the ILS market, putting its expertise, balance-sheet and ratings strength to work in helping to expand the ILS market and facilitate the smooth transfer of cedent risk to capital markets investors and ILS funds.

Adding this new private cat bond to our market data and analytics, 2025 private catastrophe bond issuance has reached $526.51 million so far this year, according to Artemis’ extensive cat bond market data.

You can analyse private cat bond issuance by year in our chart that breaks down all our tracked issuance by type here.

2017 remains the record year for private cat bonds that we have tracked, at just over $1.12 billion of issuance recorded by Artemis.

Read more about this new LI Re (Series 2025-2) private catastrophe bond in our extensive cat bond Deal Directory.

You can filter our Deal Directory to view only private cat bond deals.