Hannover Re
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Wildfire losses from fronting and ILS activities were EUR438mn. -
The bond will offer retrocession coverage for Hannover Re.
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The catastrophe bond comes after the issuance of a Mayflower Re bond last year.
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This is the first time the Texas Fair Plan has entered the cat bond market.
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The deal is 45% larger than 2024’s issuance after attracting a “greater number of investors”.
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Sources warned some property XoL books are already running 50% loss ratios.
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The reinsurer had taken the opportunity to buy more limit across event and aggregate covers.
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The largest individual net loss at EUR230mn was caused by Hurricane Milton.
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The carrier is likely to exceed its Q1 large-loss budget due to the California wildfires.
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The reinsurer has cut the cession rate to 33% from 40% last year.
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The reinsurer is seeking index-based cover for a wide scope of perils and territories.
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The reinsurer confirmed its intention to reduce the K-Cession sidecar for 2025.
