News
Lumen Re announces successful placement of inaugural catastrophe bond “Photon Re”
Lumen Re Ltd., the Bermuda‑based property catastrophe reinsurer within the ILS platform of LGT Capital Partners, today announced the successful closing of Photon Re, its first Rule 144A catastrophe bond. The USD 175 million issuance provides index‑based protection against severe U.S. and Canadian hurricane and earthquake events and over a four-year term. The placement enhances Lumen Re’s existing retrocession program and strengthens the company’s ability to manage its peak exposures.
Photon Re underscores Lumen Re’s continued commitment to disciplined risk management and reflects the conducive environment in today’s catastrophe bond market, where transparent, index‑based structures remain in high demand. 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.”
The transaction was structured and placed by GC Securities.
