Hannover Re’s insurance-linked securities (ILS) market facilitation activities continued to expand in 2024, with the number of collateralised reinsurance participations fronted for investors rising, while its catastrophe bond fronting also grew to a new record level.
Hannover Re has been active in the insurance-linked securities (ILS) market for many years, as sponsor of securitized risk transfer transactions, a risk-sharing partner for third-party investors through its K-Cessions quota share sidecar, and increasingly in recent years as a facilitator that helps cedants access capacity from the capital markets and assists institutional investors or ILS funds to access risk.
On the catastrophe bond side, where Hannover Re fronts the capital markets as an intermediating reinsurer for sponsors looking to enter into cat bond transactions, 2024 saw the reinsurance company transfer around US $4 billion in exposures to the capital markets across 13 cat bond deals, covering a range of catastrophe perils.
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