Hannover Re facilitates two LI Re private catastrophe bonds via Kaith Re

Hannover Re’s Bermuda-domiciled transformer vehicle Kaith Re Ltd. has issued two new private catastrophe bonds, with a relatively small $4 million of notes issued across the LI Re (Series 2026-1) and LI Re (Series 2026-2) deals that will support securitized and collateralized reinsurance or retrocession arrangements.

These are the first LI Re private catastrophe bonds to be issued by Kaith Re Ltd. since October 2025.

Last year, Hannover Re’s Kaith Re Ltd. vehicle issued two LI Re private cat bond arrangements, bringing in total just under $24.53 million of notes to market across a LI Re (Series 2025-1) issuance in July and a LI Re (Series 2025-2) in October.

Prior to last year, the LI Re private cat bond series had only featured one issuance per-year since 2016. Of course, we cannot be certain there aren’t other LI Re deals, as being privately placed insurance-linked securities (ILS) we are unlikely to see them all.

Hannover Re continues to play an increasingly important facilitation role in the insurance-linked securities (ILS) marketplace, with private cat bonds just one way it helps clients access capacity from the capital markets and investors to access securitized sources of typically catastrophe reinsurance risks.

In 2025, Hannover Re’s Kaith Re Ltd. vehicle issued $103 million of Seaside Re private cat bonds and $24.5 million of LI Re notes.

In 2026 so far, we’ve seen $95 million in Seaside Re issuance from Hannover Re’s Kaith Re vehicle, the recent $35 million Cumulus Re cloud outage cyber cat bond deal which was also issued by the same entity and now these two LI Re private cat bonds adding another $4 million of notes.

For these latest two private insurance-linked securities (ILS) arrangements, 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 two series of notes.

The vehicle has issued $2 million of LI Re Series 2026-1 and $2 million of LI Re Series 2026-2 private cat bonds.

We assume the issuances transform and securitize underlying reinsurance or retrocession related contracts, with the risks contained in the segregated account, and in both cases the notes are scheduled for maturity on March 15th 2027, we understand.

All $4 million of LI Re private cat bond notes from the two new series are now listed on the Bermuda Stock Exchange (BSX) as Section V – Insurance Related Securities and were privately placed with qualified investors.

Private cat bond issuance in 2026 has now reached just over $282 million of issuance so far.

In 2025 we analysed and tracked $626.51 million of private catastrophe bonds, as our chart shows.

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 these first private catastrophe bonds of 2026 in our extensive cat bond Deal Directory.

You can filter our Deal Directory by type of transaction to view only private cat bond deals.