MUNICH (Bloomberg) - Hannover Re, Germany's second-biggest reinsurer, completed the sale of $133 million of bonds to help protect against US catastrophes.

The one-year bonds "consist exclusively of US catastrophe business, predominantly hurricane risks in Florida," the Hanover- based reinsurer said in an e-mailed statement yesterday.

The bonds will be sold through Globe Re, a Bermuda-based company set up for this transaction, Hannover Re said. Globe Re is the first deal for the company's insurance-linked securities department, set up at the beginning of the year to compete with Munich Re and Swiss Reinsurance Co. in helping primary insurers transfer risks to capital markets.

Investors in insurance-linked securities typically demand above-average returns because they may lose their entire stake in the event of a predefined disaster such as a hurricane or earthquake striking a specific region. In that case, the investors' money goes to the security's seller to help cover claims.