Hannover Re

The catastrophe bond will take the firm’s cover to $250mn.

HannoverRe said that EUR180mn of its EUR221.6mn ceded Ida losses stemmed from ILS businesses that Hannover Re fronts.

Hannover Re has ceded more than twice the level of large catastrophe losses to reinsurance and retro partners in the first nine months of 2021 as it did in 2020, as it retained only around a third of its Bernd flood claims on a net basis.

The executive said “every reinsurance buyer” underestimated the impact of the flooding.

The reinsurer aims to become carbon-neutral in operations by 2030, whilst its reinsurance target date is 2050.

In its renewal season update, the carrier said Bernd, Ida, Uri and the pandemic would force up pricing across lines and regions.

The carrier could not yet discern whether Q3 flooding losses will hit the $2.4bn programme, however.

Executive board chairman Jean-Jacques Henchoz said earnings for H1 were up to pre-pandemic levels.

The deal will be fronted by Hannover Re but will provide coverage to the state backed carrier.

The reinsurer recovered 24% of its gross major losses from retro partners.

The carrier last year said its K sidecar would pick up Covid claims over time.

The carrier also said the Texas Big Freeze will be a "high double-digit million" loss.