Hannover Re is now targeting reduced pricing for its latest catastrophe bond, with the target remaining to secure $100 million  in retrocession covering US and North American peak perils from the transaction but its price guidance now lowered, Artemis has learned.Hannover Re returned to the catastrophe bond market at the beginning of the month aiming to secure $100 million or more in US and North American peak peril retrocession on an industry-loss trigger basis from this 3264 Re 2025-2 deal.While the target size is unchanged, we understand, the price guidance has been lowered as Hannover Re targets strong price execution for its latest cat bond deal.This will become the fifth catastrophe bond in the 3264 Re series for global reinsurance firm Hannover Re, as the company continues to tap the capital markets for its retrocession needs.

3264 Re Ltd.is still offering a $100 million single tranche of Class A Series 2025-2 notes to cat bond investors, designed to provide Hannover Re with both multi-year per-occurrence coverage for northeast US named storms and also annual aggregate retrocessional reinsurance for North American earthquakes.Both types of coverage will be on an industry-loss trigger basis and running over three years and three risk periods for the aggregate quake section from June 1st.

The $100 million Class A Series 2025-2 notes that 3264 Re is set to issue come with an initial base expected loss of 3.68% and were first offered to cat bond investors with price guidance in a range from 8.25% to 9%.We’re now told by sources that the price guidance has been updated at a lower level, with a spread of 7.5% to 8.25% now being offered to investors.As a result, it seems Hannover Re is prioritising price execution over increasing the size of its new 3264 Re catastrophe bond at this stage.

Although with a robust retrocession program in place growing the size of this deal may not have been the original goal anyway for the reinsurer.You can read all about this new catastrophe bond from Hannover Re and every other cat bond issued in the Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.