Hannover Re launches new deal from sidecar

Reinsurer Hannover Re has used its Bermuda-based segregated accounts company Kaith Re to issue a small insurance-linked security, which a single investor has invested in.

LI Re (Series 2014-1) is a $10 million deal which is listed on the Bermuda Stock Exchange.

Hannover Re said: “The reinsurance contract does not cover Hannover Re risks. One ILS investor has invested in this bond.”

The Kaith Re vehicle has been used by Hannover Re in the past to move specific portions of risk off its own balance and to third party investors. It has done a number of such deals in the past.