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Hannover Re is now seeking an upsized $200 million in broad retrocession covering worldwide peak perils on an annual aggregate basis, from its new 3264 Re Ltd. (Series 2025-1) cat bond transaction that is in the market, Artemis has learned.
The reinsurer returned to the cat bond market earlier this month, with an initial target to secure $175 million in aggregate retrocessional reinsurance from this fourth in the 3264 Re series of deals.
This new 3264 Re 2025-1 catastrophe bond seeks broad multi-year annual aggregate retrocessional reinsurance protection for Hannover Re from one tranche of notes, while a second tranche is focused on North American earthquake risks only.
The retrocessional coverage it provides to Hannover Re will run across three years, with three annual risk periods that start on February 1st and end January 31st, up to Jan 31 2028.
The target size has now been increased, we’re told, with up to $200 million in protection now sought, while the price guidance has been updated, one tranche seeing the price a little higher than the original mid-point of guidance, the other seeing the price fall.
What was a $75 million tranche of Class A notes will cover a range of worldwide perils with event caps and franchise deductibles at a range of index levels for each and these are now pitched at up to $100 million in size, we’re told.
The Class A notes have an initial expected loss of 7.5% and were initially offered with spread price guidance in a range from 20.5% to 21.5%, but we’re now told the price guidance has been updated to 21.25%, so in the higher end of the range.
A $100 million tranche of Class B notes, that will only cover the North America earthquake peril, including Canada, are still pitched at the same initial size.
The Class B notes have an initial expected loss of 0.92% and were first offered with spread price guidance in a range from 3.5% to 4%, but we’re now told that has fallen to an updated range of 3% to 3.5%.
As a result, it looks like Hannover Re may upsize its latest catastrophe bond slightly, while the way the pricing moves shows cat bond investors still demanding adequate returns for taking on more risky aggregate tranches of notes, while the earthquake only tranche looks set to price more keenly for the reinsurer.
You can read all about this new 3264 Re Ltd. (Series 2025-1) catastrophe bond from Hannover Re and every other cat bond issued in the Artemis Deal Directory.
Hannover Re now seeks up to $200m of aggregate retro from 3264 Re 2025 cat bond was published by: www.Artemis.bm
Our catastrophe bond deal directory
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred.
Hannover Re is now seeking an upsized $200 million in broad retrocession covering worldwide peak perils on an annual aggregate basis, from its new 3264 Re Ltd. (Series 2025-1) cat bond transaction that is in the market, Artemis has learned.
The reinsurer returned to the cat bond market earlier this month, with an initial target to secure $175 million in aggregate retrocessional reinsurance from this fourth in the 3264 Re series of deals.
This new 3264 Re 2025-1 catastrophe bond seeks broad multi-year annual aggregate retrocessional reinsurance protection for Hannover Re from one tranche of notes, while a second tranche is focused on North American earthquake risks only.
The retrocessional coverage it provides to Hannover Re will run across three years, with three annual risk periods that start on February 1st and end January 31st, up to Jan 31 2028.
The target size has now been increased, we’re told, with up to $200 million in protection now sought, while the price guidance has been updated, one tranche seeing the price a little higher than the original mid-point of guidance, the other seeing the price fall.
What was a $75 million tranche of Class A notes will cover a range of worldwide perils with event caps and franchise deductibles at a range of index levels for each and these are now pitched at up to $100 million in size, we’re told.
The Class A notes have an initial expected loss of 7.5% and were initially offered with spread price guidance in a range from 20.5% to 21.5%, but we’re now told the price guidance has been updated to 21.25%, so in the higher end of the range.
A $100 million tranche of Class B notes, that will only cover the North America earthquake peril, including Canada, are still pitched at the same initial size.
The Class B notes have an initial expected loss of 0.92% and were first offered with spread price guidance in a range from 3.5% to 4%, but we’re now told that has fallen to an updated range of 3% to 3.5%.
As a result, it looks like Hannover Re may upsize its latest catastrophe bond slightly, while the way the pricing moves shows cat bond investors still demanding adequate returns for taking on more risky aggregate tranches of notes, while the earthquake only tranche looks set to price more keenly for the reinsurer.
You can read all about this new 3264 Re Ltd. (Series 2025-1) catastrophe bond from Hannover Re and every other cat bond issued in the Artemis Deal Directory.
Hannover Re now seeks up to $200m of aggregate retro from 3264 Re 2025 cat bond was published by: www.Artemis.bm
Our catastrophe bond deal directory
Sign up for our free weekly email newsletter here.
