While Hannover Re has expanded its range of insurance-linked securities services and facilitation, responding to market demand, the company sees collateralised fronting as the centrepiece of this capital market focused aspect of its global reinsurance operations, executives Silke Sehm and Patrick Horstmann told us in an interview.Hannover Re has a long-history in the insurance-linked securities market as a key market facilitator, a company seeking protection, and the reinsurer was one of the innovator’s responsible for the market evolving into what we see as ILS today.It’s most recent addition to the multi-pronged ILS facilitation strategy was the launch of Hannover Re Capital Partners, a Bermuda based ILS platform that offers a different way for investors to access risk via the company.That new venture launched its operations at the beginning of 2026 and in advance of that was explained as .

Now that new division is operational, we spoke with Hannover Re Executive Board Member Silke Sehm and Head of ILS Patrick Horstmann, who stressed that the reinsurer wants to be a dependable and scalable partner for the ILS market and its constituents, across all the different offerings.We asked Sehm about how the reinsurer views its role in facilitating and growing the insurance-linked securities market.She explained, “Hannover Re placed the world’s first risk securitisation in 1994 which has developed into the long-standing and market wide known K-Quota Share.

We have been active in insurance linked securities markets ever since and see ILS as a natural and essential bridge between risk and capital markets.“Our role is to act as a facilitator, offering a dependable and scalable set of solutions that work for both cedants and investors across market cycles.” Moving on to discuss the recent Bermuda unit launch, Sehm explained how it rounds out Hannover Re’s offering in ILS, “With the successful launch of our Bermuda-based sidecar structure, Hannover Re Capital Partners, HCP, we now provide services for the full spectrum of ILS instruments.Whether catastrophe bond transformation, collateralised fronting, life ILS solutions, investments into catastrophe bonds or sidecars, we can support our partners with the solutions and structures that best fits their needs.” The Executive Board Member expects the ILS market to continue developing, with demand-side drivers expected to persist.

Sehm said, “The ILS market continues to expand as investors look for transparent, low-correlated returns and cedants seek additional capacity.“We see steady activity across instruments – from catastrophe bonds to collateralised reinsurance and quota share solutions – each serving different needs within this ecosystem.” at Hannover Re in the fourth-quarter of 2025 and also became a Director of the new Bermuda unit Hannover Re Capital Partners.In previous roles, Horstmann had global responsibility for life and P&C insurance-linked securities activities and has been an integral person within Hannover Re’s service offering of collateralised fronting to the ILS market as well.

Discussing the importance of the collateralised fronting business to Hannover Re, Horstmann told us, “Collateralised fronting has steadily developed into our biggest ILS segment by volume over the past several years and it will remain the centrepiece of our offering.It provides investors exceptional flexibility in the way they can participate in (re)insurance risks.“While overall volume in collateralised fronting remained stable last year, the underlying activity has continued to grow, and we are expanding our team to support further growth of our existing fronting relationships and of potential new clients and to maintain the execution quality our partners expect.” Horstmann further explained that growing the collateralised fronting business remains a key objective and Hannover Re sees this element of its ILS service offering as critical to maintain and enhance, given the capital-efficiency it provides to ILS managers and investors is an important market feature.

“A strategic focus of our ILS activities is to grow the collateralised fronting business along with our other ILS offerings over the next years, and we have created a future-ready set-up for this,” Horstmann explained.Adding that, “What investors value most are structures with clear collateral mechanics and predictable execution in a fast and pragmatic way.“That is where Hannover Re’s long-standing expertise and track record play a critical role.” ..

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