Last week German-based property/casualty reinsurer, Hannover Re, completed its $230 million program, dubbed K3, a structured financing of portfolio-linked securitizations of reinsurance risks for natural disasters throughout Europe, Japan and the U.S.

Since the Sept. 11 attacks, the rise in overall reinsurance rates were largely expected to drive a trend for increased appetite in catastrophe bonds, which are bonds designed for primary insurers and reinsurers as an alternative tool for covering their pay-out risks that extend past conventional reinsurance covers.

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