Extensions of maturity dates proceed for $101.25 million of the 2020, 2021, and 2022 classic Seaside Re personal disaster bond transactions, permitting for ongoing improvement of disaster loss occasions that they’re doubtlessly uncovered to.
Almost $159 million of Seaside Re personal cat bonds had their maturity dates prolonged again in December 2022.
$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.
That left $119.75 million of Seaside Re personal cat bonds, throughout 2020, 2021, and 2022 vintages, nonetheless prolonged and presumably nonetheless uncovered to potential losses, whereas one of many 2022 sequence was allowed to mature.
As a outcome, $109.75 million of the Seaside Re cat bonds had their maturity dates prolonged additional via to October fifteenth 2023, whereas additional improvement of disaster loss occasions is awaited and higher readability required earlier than capital might be returned to traders, or any realised losses be paid.
Now, $101.25 million of these remaining Seaside Re cat bonds that had their maturity dates prolonged, have had them prolonged out an extra three months, to January fifteenth 2024, detailed under:
One sequence, the $8.5 million of Seaside Re (Series 2022-41) personal cat bond notes, has not been prolonged this time round, which suggests these notes may now mature on schedule on October fifteenth.
The remaining $101.25 million of nonetheless prolonged 2020, 2021, and 2022 classic Seaside Re personal cat bonds now have their maturity dates aligned with these of the 2023 classic offers.
For the Series 2022 personal cat bond tranches from Hannover Re’s Seaside Re program, we make the idea that they’re at-risk of potential losses associated to hurricane Ian, provided that was the biggest disaster loss occasion of the final yr and continues to develop.
For the remaining 2020 and 2021 classic Seaside Re personal cat bonds, these are assumed to be uncovered to disaster losses from their respective years of issuance, given almost each Seaside Re cat bond has offered reinsurance or retro protection throughout a single yr threat interval on the most.
Hannover Re is likely one of the most essential facilitators within the disaster bond market, serving to traders access reinsurance associated returns in securitized type, and ceding purchasers to access the capital markets.
The reinsurer acts as a threat transformer and facilitator for 144A cat bonds, personal disaster bonds and different insurance-linked securities (ILS).
In 2022, Hannover Re’s Kaith Re car introduced 9 Seaside Re personal disaster bond tranches to market, totalling $108.5 million of threat transferred and securitized, in addition to one LI Re personal cat bond which transferred $15 million of California earthquake threat.
In 2023 to-date, Hannover Re’s Kaith Re car has issued 4 Seaside Re personal cat bonds, for $49 million of threat capital.
According to Artemis’ in depth information on the disaster bond market, personal cat bond issuance reached just below $396 million for the primary 9 months of 2023.
Details of each personal disaster bond we’ve tracked might be present in our Deal Directory, which you’ll filter by kind of transaction making it simpler to view solely personal cat bond issuances.
View our chart that breaks down issuance of disaster bonds by yr and kind, so you’ll be able to analyse personal cat bond issuance by yr.
