Kaith Re

A new $5 million private catastrophe bond issued by German reinsurance company Hannover Re’s Bermuda-domiciled vehicle Kaith Re Ltd. has come to light, with the LI Re (Series 2024-1) deal assumed to be providing privately placed collateralized and securitized catastrophe reinsurance capacity for an unknown sponsor.

Some $131.25 million of Hannover Re’s Seaside Re private catastrophe bonds have had their maturity dates extended further into 2024, as uncertainty continues over many of the 2021, 2022 and 2023 vintage deals.

The arrival of the world’s first cloud outage catastrophe bond was viewed very positively, and provides investors with a new avenue into the cyber insurance-linked securities (ILS) space, according to Henning Ludolphs, Managing Director Retrocession and Capital Markets at Hannover Re.

Global reinsurance firm Hannover Re has successfully sponsored a $13.75 million Cumulus Re (Series 2024-1) parametric cloud outage catastrophe bond that was privately issued and placed using the firm’s Kaith Re Ltd. vehicle, with modelling of the cyber risks undertaken by Parametrix.

The first private catastrophe bonds of 2024 have now come to light, as $59 million in Seaside Re private cat bond notes have been issued by Kaith Re Ltd., the transformer vehicle owned by global reinsurance firm Hannover Re.

All of the 2023 issued vintage of Hannover Re’s Seaside Re private catastrophe bonds have now had their maturity dates extended, Artemis has learned, taking the total extended to almost $139 million across the 2020, 2021, 2022 and now 2023 vintage deals.

A $15 million private catastrophe bond transaction covering California earthquake risks has come to market, with the LI Re (Series 2023-1) deal, issued by the Hannover Re owned Kaith Re vehicle, taking private cat bond issuance to almost $411 million year-to-date.

Extensions of maturity dates continue for $101.25 million of the 2020, 2021, and 2022 vintage Seaside Re private catastrophe bond transactions, allowing for ongoing development of catastrophe loss events that they are potentially exposed to.

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.