Some $131.25 million of Hannover Re’s Seaside Re non-public disaster bonds have had their maturity dates prolonged additional into 2024, as uncertainty continues over most of the 2021, 2022 and 2023 classic offers.
In the final couple of years, we now have seen repeated extensions of maturity for among the Seaside Re non-public disaster bond transactions, that have been issued by German reinsurance agency Hannover Re’s segregated accounts automobile, Kaith Re Ltd.
Almost $159 million of Seaside Re non-public cat bonds noticed their maturity prolonged again in December 2022, after which $39 million of the prolonged 2022 classic Seaside Re disaster bonds have been later allowed to mature, presumably because it was deemed they weren’t going to face any losses from the disaster occasions that they have been uncovered to.
Which left $119.75 million of Seaside Re non-public cat bonds, throughout 2020, 2021, and 2022 vintages, nonetheless prolonged and nonetheless uncovered to potential losses, with simply one of many 2022 collection allowed to mature.
After that, $109.75 million of these Seaside Re cat bonds had their maturity dates prolonged additional by means of to October fifteenth 2023.
Then yet one more 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.
More just lately, initially of this yr, all the Seaside Re non-public cat bonds issued in 2023 additionally had their maturity dates prolonged, taking the overall to only below $139 million of Seaside Re notes prolonged at the moment.
Now, we’ve seen yet one more maturity, as a $7.5 million Seaside Re (Series 2020-41) non-public cat bond association has now been allowed to mature.
Which reduces the overall nonetheless prolonged to $131.25 million and all the non-public Seaside Re cat bond collection listed beneath have now had their maturity dates set to July fifteenth 2024, Artemis has discovered.
This additional extension of maturity throughout these collection of personal cat bond notes will make sure that their protection stays available for any additional improvement of disaster loss occasions they is perhaps uncovered to.
As larger readability emerges over the quantum of related loss occasions, their capital can both be returned to traders, 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 could possibly be aggregated extreme climate losses, given there weren’t any main named storm losses or quakes in that calendar yr.
For the Series 2022 non-public cat bond tranches from Hannover Re’s Seaside Re program, we assume that they’re at-risk of potential losses associated to hurricane Ian, on condition that was the biggest disaster loss occasion of the final yr and it continues to develop presently.
For the remaining 2020 and 2021 classic Seaside Re non-public cat bonds, they’re assumed to be uncovered to disaster losses from their respective years of issuance, given almost each Seaside Re cat bond has supplied its reinsurance or retro protection throughout a single yr threat interval at most.
Hannover Re is likely one of the most necessary facilitators within the disaster bond market, serving to traders access reinsurance associated returns in securitized type, and ceding shoppers to access the capital markets.
The reinsurer acts as a threat transformer and facilitator for 144A cat bonds, non-public disaster bonds and different insurance-linked securities (ILS).
In 2023, Hannover Re’s Kaith Re automobile issued 4 Seaside Re non-public cat bonds, for $49 million of threat capital. Kaith Re additionally issued one $15 million LI Re (Series 2023-1) cat bond, which is uncovered to US earthquakes.
In 2024 to this point, Hannover Re’s Kaith Re automobile has issued 5 collection of Seaside Re non-public cat bonds totalling $59 million and the recent and first ever parametric cloud outage cyber cat bond, the $13.75 million Cumulus Re deal.
According to Artemis’ in depth knowledge on the disaster bond market, non-public cat bond issuance reached $642 million for full-year 2023 and to this point in 2024 has reached almost $173 million.
Details of each non-public disaster bond we’ve tracked may be present in our Deal Directory, which you’ll filter by kind of transaction making it simpler to view solely non-public cat bond issuances.
View our chart that breaks down issuance of disaster bonds by yr and sort, so you possibly can analyse non-public cat bond issuance by yr.
