Hannover Re
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A cat-focused vehicle is “the missing piece” of Hannover Re’s ILS offerings, said Silke Sehm. -
The reinsurer’s capacity is hugely important to ILS firms, with few alternative providers.
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Aaron Garcia will hold a senior role at the operation, sources have confirmed.
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The reinsurer plans to repeat its 2025 purchasing for property and specialty protections.
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The firm booked net losses from the LA wildfires of EUR615.1mn in the first half.
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The deals covered Euro wind and Italy quake, Florida hurricane and a retro bond.
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The bond will provide named storm and quake coverage in the US.
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Wildfire losses from fronting and ILS activities were EUR438mn.
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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.
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The outgoing CEO will leave the company at the end of March 2025.
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The reinsurer is planning to drop its cession rate from 40% to 30%-35%.
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The losses were not passed through to the firm’s ILS business.
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Hannover Re's cyber bond pays on a parametric basis for each hour after an agreed waiting period.
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The event could unpack issues around accumulation risk and cloud services.
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The bond’s pricing for southern US storms landed at the upper bound of guidance.
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Cat bond deals placed last week amounted to $150mn of issuance.
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The bond has priced at the mid-point of guidance.
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The reinsurer narrowed the scope of perils in its latest issuance versus its 3264 2022 cat bond.
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The carrier experienced a benign Q1 for catastrophic loss activity.
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Large losses came to EUR52mn with low retro recoveries.
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The reinsurer said it hopes to grow the size of the $13.75mn deal over time.
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Stefan Sperlich will lead the new unit as managing director.
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The reinsurer’s large losses were down 5% to EUR1.6bn for the year.
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The issuer is seeking aggregate and per occurrence coverage.
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The reinsurer said retro pricing had ‘moved slightly in our favour’ at 1 January.
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The carrier faced "significant impact" from a P&C reserve charge on its earnings.
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The Seaside Re placement is the first cat bond lite deal of 2024.
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In total nearly $139mn worth of bonds have been extended.
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The firm said it would cut its K-cession ‘significantly below 2023 levels’ and buy ‘broadly similar towers of non-proportional retro’ at 1 January.
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The carrier also laid out its financial strategy through to 2026 in an investor-day disclosure.
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The cost of maintaining a team to service institutional investors does not always weigh favourably versus bringing in ILS capital.
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The Class A notes priced at the midpoint of guidance and the Class B notes at the top end.
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The insurer previously sought $250mn of coverage for any named storm event in North Carolina.
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Hannover Re said it was in discussions with retro partners about buying less in 2024.
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The group’s ceded large losses reached 17% of gross losses, up from 11% a year ago.
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Hannover Re’s Bermuda-based reinsurance transformer Kaith Re has issued a new $15mn private cat bond, a Bermuda Stock Exchange filing confirms.
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CEO Jean-Jacques Henchoz said it was “difficult to find a positive trend” in the global risk outlook.
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The reinsurer’s large loss cession ratio was 17%, up from 12% in H1 2022.
