Hannover Re has now secured its upsized target for $200 million of retrocession covering worldwide peak perils on an annual aggregate basis, from its new cat bond transaction, Artemis has learned.The reinsurance company ventured back to the cat bond market earlier this month, with an initial target to secure $175 million in aggregate retrocessional reinsurance from what will become the fourth in the 3264 Re series of deals.We then reported in a first update on this cat bond, that Hannover Re’s target had been raised to $200 million for the issuance, while at the same time the price guidance was adjusted for each of the two tranches of notes.Now, we’ve learned that the upsized target size was secured, as Hannover Re successfully priced its latest cat bond at the end of last week.

As a result, this new 3264 Re 2025-1 catastrophe bond will provide Hannover Re broad multi-year annual aggregate retrocessional reinsurance protection through one tranche of notes, while the second tranche is focused on more remote North American earthquake risk only.The broader coverage tranche saw the price finalised a little higher than the original mid-point of guidance, while the other more remote earthquake risk tranche saw its price fall, we have been told.The now confirmed as $200 million of retrocessional coverage this 3264 Re Series 2025-1 catastrophe bond provides will protect Hannover Re across three years, with three annual risk periods that start on February 1st and end January 31st, up to Jan 31 2028.

What was initially a $75 million tranche of Class A notes will now provide Hannover Re with $100 million of retrocessional protection against losses from worldwide perils with event caps and franchise deductibles at a range of index levels for each.The $100 million of Class A notes have an initial expected loss of 7.5%.They were initially offered with spread price guidance in a range from 20.5% to 21.5%, but priced for a risk interest spread of 21.25%, so in the higher end of that range.

A $100 million tranche of Class B notes, that will only cover the North America earthquake peril, including Canada, did not change in size.The $100 million of Class B notes have an initial expected loss of 0.92%.They were first offered with spread price guidance in a range from 3.5% to 4%, which later fell to an updated range of 3% to 3.5% and we’re now told these notes have been priced to pay investors a risk interest spread of 3%, so the bottom of the reduced range.

As a result, the pricing shows that cat bond investors still demand adequate returns for taking on more risky aggregate tranches of notes, while the remote risk quake only tranche priced more keenly.With Hannover Re successfully upsizing its latest cat bond to $200 million, this 3264 Re 2025-1 issuance becomes the largest of the four deals it has sponsored so far.You can view details on every catastrophe bond Hannover Re has directly sponsored by .

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.