Hannover Re cat bonds listed

Maschpark Re, an insurance-linked securities vehicle for Hannover Re, has listed $100 million worth of catastrophe bonds on the Bermuda Stock Exchange. 

The class A principal at-risk variable notes due in January 2028 were a private placement to qualified investors and are expected to cover earthquake risks in Chile, Peru, Bolivia and Argentina. 

Hannover Re's parent company, Talanx, said this was its first catastroph bond issuance. 

“We are a global insurance group enjoying ongoing growth and hence have an increased need for reinsurance protection. We are augmenting our protection for earthquake risks in Chile due to our strong market position there," said Talanx AG CFO Dr Jan Wicke. "Our cat bond transfers the risk to the capital markets, diversifying our traditional reinsurance programmes. We are delighted to be assisted in this by Hannover Re – a strong group partner with in-depth know-how and many years’ expertise on the ILS and cat bond market."

“Since placing the world’s first risk securitisation 30 years ago, Hannover Re has amassed in-depth expertise in transferring insurance risk to the capital markets, and has successfully helped numerous customers from a very wide range of sectors”, added Silke Sehm, a member of Hannover Re’s Executive board responsible for property and casualty reinsurance. 

“We are now an ILS market leader, supporting both existing partners and new customers. We are delighted to have also provided leading-edge assistance to Talanx during its debut.”

Maschpark is a park in Hannover, Germany. 

The listing sponsor was Walkers Listing Services (Bermuda). 

Hannover Re and its Bermuda subsidiaries had its A+ rating financial strength rating affirmed by AM Best this week. 

AM Best said the group has a track record of strong operating performance, supported by its diversified earnings profile. 

In 2023, Hannover Re reported a solid net income (including minority interests) of €1.83 billion under IFRS 17, up from €898 million in 2022, restated under IFRS 17. Technical results remained strong through 2023, in both the property/casualty and the life/health segments. The return-on-equity ratio equalled 22.9% at the end of the third quarter of 2024, as reported by Hannover Re.

Hannover Re’s Bermuda subsidiaries are Hannover Re (Bermuda) and Hannover Life Reassurance Company of America (Bermuda).  

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