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Hannover Re Transfers Cyber Risks to Capital Markets via Proportional Reinsurance

January 24, 2023

Hannover Re has developed an additional retrocession tool that for the first time enables the capital markets to participate directly in coverage of its cyber risks through a quota share cession. Longstanding partner Stone Ridge is supporting the transfer with capital of US$100 million.

“For the first time, we were able to transfer cyber risks to the capital markets, and on a substantial scale, through a proportional reinsurance solution. This underscores our lead role as a bridge builder between the capital markets and the insurance industry,” said Silke Sehm, whose scope of responsibility as a member of Hannover Re’s Executive Board includes retrocession and insurance-linked securities (ILS). “We want to build on this initial success and further expand our cooperation with capital markets investors, extending also beyond our own retrocessions.”

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