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Hannover Re facilitates another $60m of Seaside Re private cat bonds


Four more Seaside Re private catastrophe bonds, or cat bond lites, have been issued with the help of global reinsurance firm Hannover Re, resulting in $60 million of new insurance-linked notes brought to investors through the reinsurers’ Kaith Re Ltd. Bermuda domiciled segregated accounts vehicle.

Just last week we detailed $27 million of issuance through two Series from Hannover Re’s Seaside Re and Katith Re platform, as the reinsurer helped more investors to access U.S. property catastrophe reinsurance risks through privately securitised ILS notes.

Now, a further four Series of Seaside Re notes have been issued by Kaith Re Ltd., with a total value of $60 million.

Each of the four series saw Kaith Re Ltd. acting on behalf of its segregated account named Seaside Re to issue the notes, which collateralise an underlying reinsurance or retrocession agreement for the investors on the other side of the deal.

The $60 million of issuance consists of, a $10 million tranche of Seaside Re (Series 2019-11) notes, a $10 million tranche of Seaside Re (Series 2019-12) notes, a $30 million tranche of Seaside Re (Series 2019-31) notes, and a $10 million tranche of Seaside Re (Series 2019-41) notes.

All four series of notes have a due date of January 15th 2020, so likely represent a one year collateralized reinsurance or industry loss warranty (ILW) transaction, as are most common with private cat bonds.

The due date of Jan 15th is the same as seen with previous Seaside transactions, which suggests these are all layers of the same program, likely Hannover Re helping investors to access insurance-linked returns through its own retrocessional reinsurance program with this series of securitised private cat bond notes.

The Seaside Re bond program provides ILS investors with access to U.S. property catastrophe risks in cat bond lite form, however full details of these transactions and the reinsurance or retrocessional coverage they provide are not available.

For Hannover Re the deals look a lot like retrocession, and demonstrate the reinsurers continuing expansion of its work with ILS investors and third-party capital providers, as it acts as a conduit between cedants risks and the capital markets.

We’ve added the $60 million of private cat bonds as four separate series to the Artemis Deal Directory and what information we have on the deals will be included in all of our catastrophe bond and ILS market statistics.

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