Lumen Re secures $175m of collateralised protection with inaugural cat bond
Lumen Re Ltd., the Bermuda-based property catastrophe reinsurer within the insurance-linked securities (ILS) platform of LGT Capital Partners, has closed its inaugural Rule 144A catastrophe bond, Photon Re, securing $175 million of collateralised, index-based protection against severe U.S. and Canadian hurricane and earthquake events across two classes over a four-year term.
LGT Capital Partners said that the placement enhances Lumen Re’s existing retrocession program and strengthens its ability to manage its peak exposures.
Photon Re is said to underscore Lumen Re’s continued commitment to disciplined risk management and to highlight supportive conditions in today’s catastrophe bond market, where transparent, index-based structures reportedly remain in strong demand.
LGT Capital Partners continued, “As a long‑standing participant in the ILS market, LGT Capital Partners – through its dedicated ILS manager, LGT ILS Partners – views the addition of high-quality catastrophe bond issuances from diversified sponsors as supportive of overall market depth and resilience.
“As an integral part of the LGT ILS platform, Lumen Re is well-positioned to contribute to this continued development.”
Klaus Sapelza, Chief Underwriting Officer of Lumen Re, commented, “Photon Re is a natural evolution of our risk‑transfer strategy. It enables us to manage our peak exposures in an efficient and transparent manner, while supporting a market segment that benefits from a wider range of sponsors. We view this as a deliberate use of current market conditions and an important strengthening of our overall risk framework.”
