Some $131.25 million of Hannover Re’s Seaside Re personal disaster bonds have had their maturity dates prolonged additional into 2024, as uncertainty continues over most of the 2021, 2022 and 2023 classic offers.
Within the final couple of years, now we have seen repeated extensions of maturity for a number of the Seaside Re personal disaster bond transactions, that had been issued by German reinsurance agency Hannover Re’s segregated accounts car, Kaith Re Ltd.
Virtually $159 million of Seaside Re personal cat bonds noticed their maturity prolonged again in December 2022, after which $39 million of the prolonged 2022 classic Seaside Re disaster bonds had been later allowed to mature, presumably because it was deemed they weren’t going to face any losses from the disaster occasions that they had been uncovered to.
Which left $119.75 million of Seaside Re personal cat bonds, throughout 2020, 2021, and 2022 vintages, nonetheless prolonged and nonetheless uncovered to attainable losses, with simply one of many 2022 collection allowed to mature.
Then another deal was allowed to mature and $101.25 million of these remaining Seaside Re cat bonds had their maturity dates prolonged by an additional three months, to January fifteenth 2024.
Now, we’ve seen another maturity, as a $7.5 million Seaside Re (Collection 2020-41) personal cat bond association has now been allowed to mature.
Which reduces the overall nonetheless prolonged to $131.25 million and all the personal Seaside Re cat bond collection listed under have now had their maturity dates set to July fifteenth 2024, Artemis has realized.
This additional extension of maturity throughout these collection of personal cat bond notes will make sure that their protection stays obtainable for any additional improvement of disaster loss occasions they may be uncovered to.
As higher readability emerges over the quantum of related loss occasions, their capital can both be returned to buyers, or any realised losses be paid (ought to these collection face them).
For the 2023 classic Seaside Re cat bond notes, as we all know all of them cowl US dangers we assume the menace might be aggregated extreme climate losses, given there weren’t any main named storm losses or quakes in that calendar 12 months.
For the Collection 2022 personal cat bond tranches from Hannover Re’s Seaside Re program, we assume that they’re at-risk of potential losses associated to hurricane Ian, provided that was the most important disaster loss occasion of the final 12 months and it continues to develop right now.
For the remaining 2020 and 2021 classic Seaside Re personal cat bonds, they’re assumed to be uncovered to disaster losses from their respective years of issuance, given virtually each Seaside Re cat bond has offered its reinsurance or retro protection throughout a single 12 months danger interval at most.
Hannover Re is likely one of the most essential facilitators within the disaster bond market, serving to buyers entry reinsurance associated returns in securitized type, and ceding shoppers to entry the capital markets.
The reinsurer acts as a danger transformer and facilitator for 144A cat bonds, personal disaster bonds and different insurance-linked securities (ILS).
In 2023, Hannover Re’s Kaith Re car issued 4 Seaside Re personal cat bonds, for $49 million of danger capital. Kaith Re additionally issued one $15 million LI Re (Collection 2023-1) cat bond, which is uncovered to US earthquakes.
In 2024 up to now, Hannover Re’s Kaith Re car has issued 5 collection of Seaside Re personal cat bonds totalling $59 million and the current and first ever parametric cloud outage cyber cat bond, the $13.75 million Cumulus Re deal.
In keeping with Artemis’ in depth knowledge on the disaster bond market, personal cat bond issuance reached $642 million for full-year 2023 and up to now in 2024 has reached virtually $173 million.
Particulars of each personal disaster bond we’ve tracked will be present in our Deal Listing, which you’ll be able to filter by sort of transaction making it simpler to view solely personal cat bond issuances.
