hannover re

German reinsurance giant Hannover Re has reported an improved underwriting result in its property and casualty (P&C) reinsurance segment for the first half of 2023, as large losses of EUR 607 million fell within the budgeted expectation.

Seaside Re private catastrophe bond transactions from the 2020, 2021, and 2022 vintages continue to have their maturity dates extended, to allow for ongoing development of catastrophe losses that could trigger them, with almost $110 million of notes having their maturity extended out to mid-October.

There has been a further extension of maturity for a number of the 2022 vintage Seaside Re private catastrophe bond transactions that were issued by German reinsurance firm Hannover Re’s segregated accounts vehicle, Kaith Re Ltd., but some have now been allowed to mature, indicating greater clarity over the covered loss events.

Hannover Re, a major player in insurance-linked securities (ILS) market facilitation through its fronting and risk transformation activities in collateralised reinsurance and catastrophe bonds, booked a $900 million piece of its gross loss from hurricane Ian related to that business.

Global reinsurance firm Hannover Re expects to utilise a significant amount of its catastrophe loss budget for the first-quarter of 2023 due to the claims from the earthquakes affecting Turkey and the flooding and weather affecting New Zealand.

Global reinsurance firm Hannover Re has reported an underwriting profit for its property and casualty reinsurance business for full-year 2022, despite large losses coming out above budget for the sixth year in a row.

At the January renewals, global reinsurance firm Hannover Re capitalised on its long-standing relationships with investors to grow its K-Cession quota share sidecar structure to a record size, ultimately helping the company do more to support its ceding clients demand for natural catastrophe capacity.

Hannover Re expects to be able to benefit from its robust retrocession arrangements through the rest of the reinsurance renewals in 2023, as this enlarged source of partner capital, topped off by the biggest ever K-Cessions sidecar placement, will help the reinsurer offer more capacity without increasing its own net risk appetite.

During a January 1st renewal season the reinsurer describes as a very challenging market environment for all participants, Hannover Re secured an increase in natural catastrophe retrocession, including the expansion of its capital markets backed K-Cessions quota share sidecar facility of almost 85% to $831 million, the biggest it’s ever been.

Global reinsurance firm Hannover Re has increased its net major loss budget for 2023 to EUR 1.725 billion, citing growth in its P&C reinsurance book and an “increased loss expectation from natural catastrophes” as the drivers.