Hannover Re on steady ILS growth path with Capital Partners after first capital raise: Silke Sehm

Speaking in Monte Carlo this morning, Hannover Re Executive Board Member Silke Sehm noted that the company’s ILS management platform, Hannover Re Capital Partners, successfully wrote additional non-proportional catastrophe business in 2026 under its first third-party capital mandate, with a “lower three-digit million number” of capital raised.

Recall that the global reinsurer launched its Hannover Re Capital Partners operation at the beginning of 2026 and in advance of that had explained the rationale as putting in place a missing piece of Hannover Re’s ILS offering.

Earlier this year, we also learned that Hannover Re Capital Partners (HCP) started writing business at the January 1st 2026 reinsurance renewals.

“HCP is thus well positioned in a segment offering attractive growth prospects and delivers value added for insurance customers and investors alike with Hannover Re’s long-standing expertise and a worldwide client network,” the reinsurer explained.

At the reinsurer’s media briefing in Monte Carlo today, Sehm highlighted how the company is using HCP to further grow in the ILS market.

“We are the market leader in both structured business, we call it advanced solutions, and our ILS business, insurance-linked securities, and both generate a substantial profit for the group, which means this is relatively stable. We continue to grow, and this requires relatively little or partially very little capital,” Sehm said.

She continued: “Let’s take a look at our ILS business in a little bit more detail. We are a market leader in providing and enabling our clients access to the ILS market. Once again, we transfer a strong volume of catastrophe bonds to the capital market for our clients. In 2025, this was a total of $3.4 billion until now. For this year, this is $2.3 billion and we have currently eight transactions finalised.

“Collateral fronting for ILS investors remained stable on a very high level. To complete our ILS activities, as discussed last year already, we further expanded our existing range of ILS solutions by setting up an underwriting agency in Bermuda, HCP Hannover Re Capital Partners.

“HCP has successfully written additional non-proportional catastrophe business in 2026 under its first third-party capital mandate, so we are on a steady growth path within our broader ILS offering framework.”

Regarding how much capital was raised, Sehm said it was a “lower three-digit million number”

Michael Eberhardt, CEO Hannover Re Capital Partners and Head of P&C, Hannover Re Bermuda, said: “Yes, so we are fully aligned with the investor base, and also we have a governance structure around it. So there’s a clear allocation policy that we put in place that determines where shares are being allocated. And as Silke said, at this point we apply our same modeling, the same view of risk.

“The investors, in fact, benefit from the continuous investment we make into our underwriting platform, the continuous investment we make into our underwriting capabilities. So the access to risk that we have, we can share that with investors, and as many things, or all the things we do at Hannover, we are long-term oriented, and it’s a partnership approach. We view investors as a partner and as a long-term partner. So on that note, it’s an alignment.”