Hannover Re upsizes cat bond 60% to $200M as investor demand runs hot
What's the deal? Hannover ReDealroom has a profile for this one. Try Dealroom → has priced a $200 million catastrophe bond through its 3264 Re Ltd. (Series 2026-1) issuance, securing additional North American peak peril retrocessional reinsurance. Both tranches of notes priced below guidance.
Why now? The Germany-headquartered reinsurer returned to the cat bond market at the end of June 2026 seeking just $125 million. It then upsized the deal 60% to the maximum targeted $200 million while cutting the price — what Artemis called "strong execution all round."
How it breaks down: Bermuda-based special purpose insurer 3264 Re Ltd. will issue two tranches. The Class A notes provide $150 million of aggregate industry-loss cover for North American named storms and earthquakes over three years, priced at a 4.25% spread — the low end of revised guidance.
The Class B notes, upsized from $25 million to $50 million, cover Gulf coast and Florida named storms on a per-occurrence basis over two years. They priced at 77.5% of par as discount notes.
What's the endgame? Hannover Re continues to build retrocessional protection through the capital markets. This is its seventh 3264 Re retro cat bond and marks a quick re-raise following a busy stretch of issuance.
The track record: In 2025, the reinsurer tapped the market three times — $200 million through 3264 Re 2025-1, $150 million in May via 2025-2, and $250 million in December through 2025-3. Earlier in 2026, it also renewed a $35 million parametric cloud outage cyber cat bond via Cumulus Re.
The signal: The 60% upsizing and below-guidance pricing point to deep investor appetite for catastrophe risk. As reinsurers lean harder on capital markets for retro cover, sponsors with repeat programmes like Hannover Re are converting that demand into cheaper, larger deals.
Read more: Artemis
