Hannover Rück stock rises as Hannover Re prices USD 450 million cat bond

Hannover Rück stock traded at EUR 289.30 on Lang & Schwarz at 10:41 a.m. CEST on Friday, October 30, 2026, 1.79 percent above the Xetra close of Thursday, October 29. The move followed a report that Hannover Re had priced a USD 450 million catastrophe bond.

Artemis reported on October 26 that Hannover Re had secured the upsized reinsurance limit through Acorn Re Ltd.'s Series 2026-1 issuance. The notes were ultimately priced at an initial risk interest spread of 2.00 percent.

Capital markets share catastrophe risk

The transaction grew in stages from an initial USD 200 million target to USD 350 million and finally USD 450 million. The proceeds from the Class A notes will fully collateralize a parametric reinsurance agreement supporting the Kaiser Permanente captive Oak Tree Assurance and certain exposures Hannover Re has written for cedent clients.

The protection covers per-occurrence earthquake risk across the U.S. West Coast, with the main focus on California and coverage extending into neighboring states. The three-year term runs from November 1, 2026, through the end of October 2029. The notes carry an initial expected loss of 0.78 percent.

For Hannover Re, the deal adds another source of protection alongside traditional reinsurance and retrocession. The structure transfers defined catastrophe exposure to capital-markets investors, which can support underwriting capacity while leaving the financial result dependent on the risks and claims covered by the wider portfolio.

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