Kaith Re Ltd., the transformer vehicle owned by global reinsurance firm Hannover Re, has issued seven series of private catastrophe bond notes, all Seaside Re (Series 2025), for a total of $84 million of notes sold to investors.
Hannover Re remains a key facilitator to ILS market participants and its clients, through the matching of reinsurance risks to capital markets and insurance-linked securities (ILS) investors in a more efficient manner and its Class 3 Bermuda-based insurer and segregated accounts vehicle Kaith Re Ltd. has issued many of the private cat bonds we’ve tracked over the years.
In 2023, Hannover Re facilitated the issuance of $49 million of notes across four Seaside Re private cat bond issues and one $15 million issuance under the LI Re account of Kaith Re.
In 2024, Kaith Re issued $59 million of Seaside Re private cat bonds in January. and a further $10 million from a Series 2024-61 note issuance in August, taking Hannover Re’s Seaside Re private cat bond program issuances to $69 million last year.
Now, for 2025, the year has begun with a larger issuance from Kaith Re, as seven series of Seaside Re 2025 private cat bond notes have come to market, totalling $84 million of risk capital.
Details of all of these can be seen in the Artemis Deal Directory, which you can filter to only show private cat bonds and cat bond lite transactions.
Hannover Re uses Bermuda domiciled Class 3 insurer and reinsurance transformer vehicle Kaith Re Ltd. to issue its private cat bonds, under the Seaside Re and Li Re series.
Seven series of notes have been issued in January, bringing $84 million of private cat bond notes to institutional investors.
Each series is issued under Kaith Re’s segregated account named Seaside Re and all seven have a due date of January 15th 2026 and have been privately placed with qualified investors and listed on the Bermuda Stock Exchange (BSX).
All seven series of notes cover US risks, likely property catastrophe reinsurance in their focus and given the due dates we assume they will be one-year contracts underpinning the risk transfer arrangements.
The seven new Seaside Re private cat bond issues and their sizes can be seen below:
As in every private cat bond issuance, the proceeds from the sale of each tranche of privately placed notes to cat bond investors will fund the collateral requirements to support an underlying reinsurance or retrocession agreement, for whichever ceding re/insurer is the ultimate beneficiary of the protection.
These cat bond lite deals typically represent investor or ILS fund participation in a reinsurance or retrocession tower, a one-year collateralized reinsurance or industry loss warranty (ILW) transaction entered into around the January 2025 reinsurance renewals, or another private arrangement transformed to be matched with capital market investor appetite. They can also provide investors with securitized access to other retrocessional risks ceded by Hannover Re, in some cases.
Recently, Hannover Re also matured these five earlier Seaside Re issuances, some of which had been in extension, allowing investors to redeem any outstanding principal: Seaside Re 2021-31; Seaside Re 2021-41; Seaside Re 2022-21; Seaside Re 2022-31; and Seaside Re 2024-1.
However, extensions of maturity continue for some others, with another six outstanding series of Seaside Re notes all now having their maturity dates extended to April 15th 2025, totalling $52 million across these tranches: Seaside Re 2021-23; Seaside Re 2022-23; Seaside Re 2024-11; Seaside Re 2024-12; Seaside Re 2024-13; and Seaside Re 2024-31.
These extended notes are assumed to be exposed to catastrophe losses from their respective years of issuance, resulting in extensions of maturity to allow for ongoing development of potentially relevant catastrophe events.
It’s encouraging to see a larger $84 million Seaside Re issuance to start the year from Hannover Re’s Kaith Re structure.
Across outstanding and extended Seaside Re private cat bond issues, there are now $146 million of issuance left at this time.
Private cat bond issuance tracked by Artemis reached just over $455.5 million for 2024, which was well down on the biggest private cat bond years of 2017 and 2021, when over a billion dollars of these deals were seen.
You can track private catastrophe bond issuance by year using this interactive chart. Use the key to include or exclude types of transaction.
You can read all about this new Seaside Re (Series 2024-61) private catastrophe bond transaction in our extensive Deal Directory.
