Talanx diversifies reinsurance protection with cat bond market debut

Catastrophe bond with a size of USD 100 million and a spread of 3.5 percent issued via Maschpark Re
Protection for earthquake risks in Chile

The Talanx Group has issued its debut catastrophe bond (“cat bond”), buying multi-year protection for earthquake risks in Chile. The bond was issued via Maschpark Re Ltd., a special purpose insurer established in Bermuda, in cooperation with Talanx subsidiary Hannover Re and has a size of USD 100 million.

“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”, said Talanx AG CFO Dr Jan Wicke.

“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”, added Silke Sehm, a member of Hannover Re’s Executive Board responsible for Property & Casualty reinsurance. “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 protection for the period between January 2025 and December 2027. The parametric cover provided by the cat bond means that the amount available under the bond to meet losses incurred by Talanx depends on the strength of an earthquake.

Talanx’s first cat bond issue was brought to market by Aon Securities LLC and GC Securities, a division of MMC Securities LLC.

Disclaimer

This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.