Talanx Group, the parent company of Hannover Re, has issued its first ever catastrophe bond, securing multi-year protection against earthquake risks in Chile.
The bond, valued at USD 100 million, was issued via Maschpark Re Ltd., a special purpose insurer established in Bermuda, in cooperation with Hannover Re.
Dr Jan Wicke, Talanx AG CFO, said, “We are a global insurance group enjoying ongoing growth and hence have an increased need for reinsurance protection. We are augmenting our protection for earthquake risks in Chile due to our strong market position there.
“Our cat bond transfers the risk to the capital markets, diversifying our traditional reinsurance programmes. We are delighted to be assisted in this by Hannover Re – a strong Group partner with in-depth know-how and many years’ expertise on the ILS and cat bond market.”
Silke Sehm, a member of Hannover Re’s Executive Board responsible for Property & Casualty reinsurance, stated, “Since placing the world’s first risk securitisation 30 years ago, Hannover Re has amassed in-depth expertise in transferring insurance risk to the capital markets, and has successfully helped numerous customers from a very wide range of sectors.”
Sehm added, “We are now an ILS market leader, supporting both existing partners and new customers. We are delighted to have also provided leading-edge assistance to Talanx during its debut.”
The bond provides Talanx with coverage from January 2025 through December 2027. The parametric structure of the bond means that the payout to Talanx depends on the strength of an earthquake in the region.
Talanx’s debut catastrophe bond was brought to market by Aon Securities LLC and GC Securities, a division of MMC Securities LLC.
