Hannover Re, an Europe’s top reinsurers, has secured $20 mn of retrocessional protection for losses from sustained cloud outages.
Supported by Parametrix, this second catastrophe bond transaction, Cumulus Re II (Series 2025-1), is 45% larger than the first deal. The inaugural bond, Cumulus Re (Series 2024-1), totaled $13.75 mn and was not drawn down in its first year.
Parametrix, specializing in digital business interruption risk analytics, structured, issued, and placed the new cat bond.
The second transaction drew more investors, allowing Hannover Re to secure $20 mn of protection for 2025-2026 against accumulated losses from cloud outages—an area previously underserved in cyber risk transfer.
To develop and price the bond, Parametrix utilized its dataset to model Hannover Re’s risk portfolio. Parametrix Analytics acted as the calculation agent, giving bondholders real-time updates on cloud region status through a dedicated dashboard.
Cyber risk first entered the cat bond market in 2023 with smaller private deals, followed by larger 144A cyber cat bonds.
However, only Hannover Re’s Cumulus Re transactions cover cloud outage risks. Industry commentary had questioned the ILS sector’s capacity to model and understand these risks, particularly accumulations.
Despite this, investor confidence has grown, driven by improved loss modeling and risk assessment.
Parametrix has tracked over 2,600 historical cloud outage events and collected more than 260 bn data points on cloud performance and availability.
This data covers Amazon Web Services, Microsoft Azure, and Google Cloud Platform, the world’s largest public cloud providers.
Henning Ludolphs, Managing Director of Retrocession & Capital Markets at Hannover Re, noted that the success of the 2024 risk transfer experiment led to this larger, more routine transaction in 2025.
It is satisfying to see a successful risk transfer experiment from 2024 transformed into a larger, routine transaction in 2025. I am grateful to Parametrix, whose expertise and technology have made possible this advance in 21st-century technology risk transfer.
Henning Ludolphs, Hannover Re
Sharon Haran, Managing Director of Parametrix Analytics, highlighted that cloud outage risk can be managed effectively and praised the collaboration with Hannover Re on this second bond.
