Hannover Re has now secured the upsized target of $250 million of North American peak peril retrocession through its new catastrophe bond issuance, with the transaction set to become the largest in the program of deals so far and the biggest ever directly sponsored by the company, Artemis has learned.Global reinsurance firm Hannover Re returned to the catastrophe bond market for what its sixth transaction in the 3264 Re program of deals in November, initially aiming to secure $200 million of retrocessional reinsurance from this offering of notes.It is the third offering in the 3264 Re program of cat bonds in 2025.Hannover Re previously secured $150 million of US and Canadian cover in May through the cat bond and before that $200 million of worldwide peak peril retro through the 3264 Re 2025-1 issuance.

.As we reported , the target size for the issuance has been increased, with both tranches of notes offered at a 25% increase in dollar terms, for a total offering size of $250 million and the pricing was updated for each of the tranches within the initial guidance ranges.Now, we’re told that Hannover Re has successfully priced the 3264 Re series 2025-3 cat bond notes to provide it the 25% upsized target of $250 million of retro reinsurance protection, while the pricing was finalised at the previously revised levels.

So, the two tranches of Series 2025-3 notes issued by 3264 Re Ltd.will provide Hannover Re with $250 million of retrocession running across a three-year term, coming on risk from January 2026.Remember, this new 3264 Re cat bond also features a bit of differentiated structuring as well, given the first tranche will provide annual aggregate industry loss cover for North American named storms and earthquakes, the second will provide two sections of coverage with one an industry-loss occurrence northeast US named storms cover and the other section an industry-loss annual aggregate cover for North American earthquakes.

Both tranches of notes were upsized 25% from their initial $100 million targets, we understand.A $125 million tranche of Class A notes will provide annual aggregate named storm and earthquake cover across North America for the US and Canada on an industry loss trigger basis over a three year term and come with an initial expected loss of 3.63% The Class A notes were first offered to cat bond investors with price guidance for a spread of between 6.25% to 7%, which was later updated for a spread of 6.5% and this is where we’re now told the notes have been priced, so within the lower-half of the initial range.A $125 million tranche of Class B notes will provide two sections of cover, the first being Northeast US named storm cover on a per-occurrence basis, the second being annual aggregate North American earthquake risks (so US and Canada) and they come with a combined initial expected loss of 3.57%.

The Class B notes were initially offered with price guidance for a risk interest spread of between 5.5% and 6.25%, which was later  updated to 6%, so within the upper-half of the initial range, and this is where we’re now told the notes have been priced.It’s another new catastrophe bond that has priced within guidance, as the market appears to find more balance and also shows that cat bond investors continue to demand a reasonable level of return for certain types of risk, especially aggregate notes.So this issuance will now become the largest cat bond in Hannover Re’s 3264 Re program of deals and at $250 million it is also .

It is worth remembering though, that Hannover Re acts as a ceding reinsurer in numerous far larger catastrophe bond issuances, as it provides services as a front and conduit to the capital markets for clients in many cat bond deals as well.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.

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