hannover re

It’s becoming increasingly clear that losses to the aviation class of insurance and reinsurance business caused by the Russia – Ukraine conflict have the potential to impact retrocessional covers and perhaps some third-party capitalised sidecars.

Global reinsurance company Hannover Re could find some support from its capital markets backed K-Cessions quota share sidecar facility for certain non-war specialty lines exposures to the ongoing conflict in Ukraine.

Hannover Re faced more challenging market conditions when placing the renewal of its retrocession program at 1/1, resulting in a shrinking of protection, with its capital markets backed K-Cessions quota share sidecar facility declining 26% to around $450 million.

Almost $110 million of Seaside Re private catastrophe bond transactions have had their maturity dates extended, suggesting that these privately placed ILS deals, that were issued by German reinsurance firm Hannover Re’s segregated accounts vehicle, Kaith Re Ltd., might be considered at-risk of loss.

Reinsurance as a sector and the major global reinsurers have suffered due to elevated catastrophe losses in recent years, but analysts at investment bank Berenberg believe that Hannover Re’s comprehensive retrocession program is giving investors confidence and helped to buoy its share price in 2021.

Global reinsurance giant Hannover Re has facilitated the issuance of another $84.5 million of Seaside Re private catastrophe bonds for 2022, with another eight issuances from its Kaith Re transformer vehicle coming to light.

German reinsurance company Hannover Re has facilitated issuance of two new private catastrophe bond transactions, a $15 million California quake focused LI Re (Series 2022-1) and $24 million Seaside Re (Series 2022-1) covering unknown U.S. property catastrophe risks.

German reinsurance giant Hannover Re has revealed in its first-half results this morning, that it is anticipating a net loss of up to EUR 250 million from the recent severe flooding across Europe and in particular Germany.

German reinsurance giant Hannover Re benefited from its retrocessional protections throughout 2020, potentially ceding almost one-third of natural catastrophe losses and 24% of its losses from the COVID-19 pandemic.

German reinsurance firm Hannover Re has downsized its capital markets backed K-Cessions quota share retro reinsurance sidecar facility to $610 million for 2021, a roughly 10% decrease from the prior year.