Hannover Re’s Bermudian-domiciled Kaith Re vehicle has issued a $10 million private catastrophe bond transaction to cover California earthquake risk.

The Artemis.bm alternative risk transfer news website reported that the so-called “cat bond lite” transaction was for an unknown cedant.

Hannover Re has been busy using its Kaith Re transformer vehicle to facilitate the securitisation of reinsurance and retrocessional risks for investors and cedants.

Artemis said that the latest private catastrophe bond, LI Re (Series 2018-1), meant that Hannover Re had now assisted in the issuance of $97 million of securitised risk to investors just in the last week.

This is the first LI Re transaction since a year ago and it covers the same risks of California earthquake.

Artemis reported that the underlying transaction would be a one-year collateralised reinsurance or industry loss warranty deal, as are most common with private cat bonds.

The $10m of LI Re Series 2018-1 private cat bond notes issued through Kaith Re have been listed on the Bermuda Stock Exchange.