Hannover Re returns for more North American retro with $125m 3264 Re 2026-1 cat bond

Global reinsurer Hannover Re is back in the catastrophe bond market and looking to secure additional North American peak peril retrocessional reinsurance, with a $125 million initial target for a new 3264 Re Ltd. (Series 2026-1) issuance, Artemis has learned.

This will become the seventh sponsorship of a 3264 Re Ltd. retrocession catastrophe bond from the global reinsurance company.

Last year, Hannover Re tapped the cat bond market three times for nat cat protection, $200 million of worldwide peak peril retro through the 3264 Re 2025-1 cat bond, then $150 million of US and Canadian cover in May through the 3264 Re 2025-2 offering and finally another $250 million of North American peak peril retrocession through a 3264 Re Ltd. (Series 2025-3) deal in December.

Earlier this year, Hannover Re also expanded its cyber cat bond coverage, securing a$35 million renewal of its parametric cloud outage cyber catastrophe bond with the Cumulus Re (Series 2026-1) issuance.

In addition, the reinsurer has acted as a facilitator and front to the capital markets for numerous cat bond sponsors this year.

Find details of all Hannover Re’s directly sponsored catastrophe bonds in our extensive Deal Directory.

This new 3264 Re Series 2026-1 catastrophe bond is the first under the catastrophic peril focused program this year and sees Hannover Re again looking to bolster its North American retro protection. While, like the last 3264 Re deal in 2025, this new offering also features a multi-section approach to provide targeted protection in one of the tranches of notes.

Bermuda based special purpose insurer (SPI) 3264 Re Ltd. offering two tranches of Series 2026-1 notes to cat bond investors, initially amounting to a $125 million offering across them both, with the proceeds from their sale set to fully-collateralize retrocessional reinsurance agreements to benefit sponsor Hannover Re.

The two tranches of notes have different coverage structures, covered perils and terms.

The first Series 2026-1 Class A tranche of notes will provide Hannover Re with annual aggregate industry-loss based cover for North American named storms and earthquakes (US, DC and Canada) over a three year term.

The second Series 2026-1 Class B tranche of notes will provide the reinsurer with two sections of coverage, both being industry-loss and per-occurrence based, but the first covering Gulf coast named storms and the second section covering Florida named storm events over a two year term.

The Class A annual aggregate and North America named storm and quake focused tranche is targeted at $100 million in size and would attach based on annual aggregated index points, after a points based event deductible.

The Class A notes come with an initial attachment probability of 2.79%, an initial base expected loss of 2.56% and are being offered to cat bond investors with spread price guidance in a range from 4.75% to 5.25%, sources said.

The Class B tranche is targeted at $25 million in size and has different per-occurrence index point attachments for each of Gulf and Florida named storm events.

We’re told the Class B notes have an initial attachment probability of 7.82% and an initial base expected loss of 6.18% for Gulf named storms. While they have an initial attachment probability of 7.32% and an initial base expected loss of 6.01% for Florida named storms. This tranche is being offered as discount notes and come with price guidance of 76% to 77% of par, we understand.

Hannover Re is again looking to buy strategically targeted retrocession with its latest catastrophe bond, to provide risk transfer for significant industry loss events caused by peak perils across North America. The inclusion of the Gulf and Florida hurricane-focused Class B tranche shows the reinsurance company looking to take out some of the peaks of its exposure curve in key regions.

You can read all about this new 3264 Re Ltd. (Series 2026-1) catastrophe bond from Hannover Re and every other cat bond issued in the Artemis Deal Directory.