Hannover Re launches $200M earthquake catastrophe bond to transfer California quake risk from Kaiser Permanente’s insurer to investors.

Hannover Re has launched its sixth Acorn Re parametric earthquake catastrophe bond, targeting $200 million, to transfer earthquake risk from Kaiser Permanente’s workers compensation captive insurer, Oak Tree Assurance Ltd., to capital markets. Issued through Bermuda-based Acorn Re Ltd. (Series 2025-1), the bond uses parametric triggers based on seismic activity in California and other west coast areas, with proceeds collateralizing retrocessional reinsurance. Structured by Hannover Re and placed by GC Securities, the transaction marks continued innovation in insurance-linked securities, enabling reinsurers to manage regional catastrophe exposure while offering institutional investors diversified risk-return opportunities.