Hannover Re is again within the disaster bond market trying to bolster its North American peak peril retrocession via a brand new 3264 Re Ltd. (Sequence 2025-3) issuance that has an preliminary goal of $200 million and one tranche of which utilises a multi-section strategy to offer focused safety, Artemis can report.
This may grow to be the sixth 3264 Re retrocession disaster bond from the worldwide reinsurance firm and the third within the sequence in 2025, having secured $150 million of US and Canadian cowl in Might via the 3264 Re 2025-2 cat bond and previous to that $200 million of worldwide peak peril retro via the 3264 Re 2025-1 issuance.
As well as, this 12 months Hannover Re additionally sponsored a renewal of its parametric cloud outage cyber disaster bond, securing $20 million of safety via Cumulus Re 2025-1.
Whereas the reinsurer has additionally fronted the capital markets for quite a few cat bond sponsors this 12 months as effectively.
Discover particulars of all Hannover Re’s instantly sponsored disaster bonds in our intensive Deal Listing.
With this sixth disaster bond beneath the Bermuda based mostly 3264 Re Ltd. particular function insurance coverage automobile, Hannover Re is once more trying to safe extra retrocessional reinsurance for peak peril {industry} loss occasions in the USA and Canada, we’re instructed.
3264 Re Ltd. is ready to supply two tranches of Sequence 2025-3 notes to cat bond buyers, with the proceeds from their sale set to collateralize retrocessional reinsurance agreements to profit sponsor Hannover Re.
The 2 tranches of notes have completely different protection constructions, the primary being an annual mixture {industry} loss cowl for North American named storms and earthquakes, the second offering two sections of protection with one an industry-loss incidence northeast US named storms cowl and the opposite part an industry-loss annual mixture cowl for North American earthquakes.
Each tranches could have three 12 months phrases, approaching danger from January 2026, we perceive.
A presently $100 million Class A tranche of notes will present annual mixture named storm and earthquake cowl throughout North America for the US and Canada on an {industry} loss set off foundation over a 3 12 months time period. The notes would connect based mostly on annual aggregated index factors, after a factors based mostly franchise deductible for every peril.
The Class A notes include an preliminary attachment likelihood of 4.04%, an preliminary anticipated lack of 3.63% and are being supplied to cat bond buyers with unfold worth steerage in a spread from 6.25% to 7%, sources mentioned.
A Class B tranche of notes are additionally presently $100 million when it comes to goal measurement and can present two sections of canopy. The primary being Northeast US named storm cowl on a per-occurrence foundation, the second being annual mixture North American earthquake dangers (so US and Canada) once more with a franchise deductible to be considered first.
The Class B notes have a mixed preliminary attachment likelihood of three.94% and mixed preliminary anticipated lack of 3.57%. Whereas the primary part of Northeast named storm incidence cowl has an preliminary attachment likelihood of two.25% and preliminary anticipated lack of 2.04%, however the second part of canopy for mixture NA quakes has an preliminary attachment likelihood of 1.7% and preliminary anticipated lack of 1.53%. The value steerage for these Class B notes is for a danger curiosity unfold of between 5.5% and 6.25%, Artemis understands.
It’s encouraging to see Hannover Re returning to the cat bond market with its third 3264 Re deal of this 12 months, exhibiting the reinsurance agency constructing out extra capital markets cowl inside its retrocessional reinsurance preparations.
You may learn all about this new 3264 Re Ltd. (Sequence 2025-3) disaster bond from Hannover Re and each different cat bond issued within the Artemis Deal Listing.
