The Talanx Group, in cooperation with Talanx subsidiary Hannover Re, has issued its debut catastrophe bond (“cat bond”), buying multi-year protection for earthquake risks in Chile. The bond has a size of USD 100 million, the Group said. The bond provides Talanx with protection for the period between January 2025 and December 2027.

“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.