Hannover Re has transferred storm risk for the Texas Windstorm Insurance Association into the capital markets in its latest ILS transaction.
Institutional investors are providing $400 million of capital in support of the transaction, which matures in three years, with risks limited to the state.
The transaction is the latest in a long line for Hannover Re, which has been active in the ILS space since 1994.
Commenting on the transaction, Ulrich Wallin, CEO of Hannover Re says: "With this transaction Hannover Re has underscored its long-standing expertise in the field of alternative risk transfer and leveraged the opportunity to generate low-risk and stable margins."
