Hannover Re secures 60% upsized $200m 3264 Re 2026-1 retro cat bond

Hannover Re has now successfully priced its latest catastrophe bond sponsorship, securing a 60% upsized $200 million of additional North American peak peril retrocessional reinsurance from the new 3264 Re Ltd. (Series 2026-1) issuance, with both tranches of notes pricing below guidance, Artemis understands.

The Germany headquartered global reinsurance firm returned to the catastrophe bond market at the end of June, initially seeking $125 million of retro protection from its latest deal under the 3624 Re Ltd. program.

Hannover Re continues to build-out retro protection from the capital markets using catastrophe bonds and with the notes now priced, this will become the seventh sponsorship of a 3264 Re Ltd. retrocession catastrophe bond by the global reinsurance company.

Hannover Re tapped the cat bond market three times for nat cat protection in calendar year 2025, securing $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) issuance in December.

Earlier in 2026, 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.

As well as sponsoring cat bonds for its own protection, the reinsurer also acted as a facilitator and front to the capital markets for numerous 144A cat bond sponsors this year and through private cat bonds.

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

As we said, when this new 3264 Re Ltd. Series 2026-1 cat bond was first launched to investors the offering size was only $125 million.

We’ve now learned that Hannover Re sought to upsize the deal and reduce the price in a first update to the offering details. Then at pricing, secured the maximum targeted size of $200 million for the issuance, while pricing both tranches of notes at the bottom-end of reduced guidance as well, strong execution all round.

Bermuda based special purpose insurer (SPI) 3264 Re Ltd. will now issue the two tranches of notes, together providing an additional $200 million of protection to bolster Hannover Re’s North American retro.

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 Class A notes began as a $100 million offering, but then the target size was raised to between $125 million and $150 million, before finally pricing at that upper-end to provide $150 million of retro.

The Class A notes come with an initial base expected loss of 2.56% and were first offered to cat bond investors with spread price guidance in a range from 4.75% to 5.25%. The price guidance was first updated at 4.25% to 4.75% and then were eventually priced at the low-end of the revised range for a spread of 4.25% to be paid, we are told.

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 B notes began as just a $25 million offering, which was first increased to between $40 million and $50 million, eventually being finalised at the upper-end to provide $50 million of retro, we understand.

The Class B notes have an initial base expected loss of 6.18% for Gulf named storms and an initial base expected loss of 6.01% for Florida named storms, while they were first offered to investors with price guidance of 76% to 77% of par, being discount notes. That guidance was first updated to between 77% and 77.5% of par and were then priced at 77.5% of par, so again the low-end of the reduced range, sources said.

As a result, Hannover Re has secured $200 million of strategically targeted retrocession with its latest catastrophe bond, to provide risk transfer for significant industry loss events caused by peak perils across North America, while securing that coverage at attractive pricing, below initial guidance expectations.

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.