Hannover Re is setting up a Bermudian-based insurance-linked securities platform, Hannover Re Capital Partners, as it looks to expand its ability to manage and deploy third-party capital, according to a report by Artemis.bm.

The platform will act as an underwriting agent, writing non-proportional natural catastrophe business backed by outside investors.

It is expected to operate in a similar way to an ILS investment manager, creating a new avenue for Hannover Re to diversify its capital base while earning fee income.

Silke Sehm, a member of Hannover Re’s executive board, confirmed the initiative during a media briefing at the Rendez-Vous de Septembre in Monte Carlo, as reported by Artemis.bm.

She described Hannover Re Capital Partners as a complement to the firm’s existing ILS activities, which include catastrophe bond transformer business and collateralised fronting.

“We plan to set up an underwriting agency named Hannover Re Capital Partners, HCP, that we intend to write non-proportional nat cat business, with a back-up of third-party capital from investors,” Ms Sehm said.

She added that investor discussions so far have been “very positive” but declined to specify how much capital the venture could attract at launch. “The idea is to start in a typical Hannover Re way, slow, maybe with one or two investors right in the beginning,” she said.

According to Artemis, the Bermudian entity has existed since 2020, originally under the name Bristol Re Ltd, before being renamed Hannover Re Capital Partners Limited in October 2024.

Sources told Artemis that Aaron Garcia, formerly head of investments at Hiscox ILS in Bermuda, is expected to take a senior role in the new platform.

Ms Sehm emphasised that the initiative is not intended to compete with Hannover Re’s existing ILS partners.

“We do not see this in contradiction or that there is a conflict,” she said. “It’s quite similar, and it’s extending our activities.”

The reinsurer is aiming to secure regulatory approval in Bermuda and could look to begin building portfolios with third-party capital ahead of the key January 1 reinsurance renewals, Artemis reported.