Fronting news

Arch Capital continues to leverage third-party capital within its business and sees it as a valuable tool with a lower cost-of-capital, according to CEO Nicolas Papadopoulo, while the firm’s CFO has highlighted that profit commissions from Arch’s third-party capital platform show up in beneficial ways in its reporting.

Hannover Re has continued to expand its collateralised fronting business this year, growing it 10% so far in 2026 according to executives from the company. While we’ve also learned that under its Hannover Re Capital Partners unit two insurance-linked securities fund strategies are planned for launch.

Rating agency AM Best has indicated in a new report that fronting companies are expected to engage more frequently with the insurance-linked securities (ILS) market to drive capacity diversification using catastrophe bonds, sidecars and collateralized reinsurance structures.

Enstar, one of the largest legacy and run-off reinsurance specialists in the world, has recently begun fronting for capital providers including insurance-linked securities managers and sees this new offering a diversifying solution for its toolkit and one it intends to selectively develop further, Anguel Zaprianov explained to Artemis in a recent interview.

While Hannover Re has expanded its range of insurance-linked securities services and facilitation, responding to market demand, the company sees collateralised fronting as the centrepiece of this capital market focused aspect of its global reinsurance operations, executives Silke Sehm and Patrick Horstmann told us in an interview.

The United States Court of Appeals has weighed in on a lawsuit regarding the Vesttoo fraud and the fake letters of credit (LOC) that underpinned reinsurance deals linked to the company, with a finding that could have some ramifications for brokers.

Hannover Re continued to grow the volumes of its activities as a key insurance-linked securities (ILS) market facilitator in 2025, with securitised reinsurance volumes expanding and collateral furnished for fronted ILS arrangements growing as well.

Hannover Re has reported its full-year 2025 results this morning, with a meaningful increase to net income and clear growth in property and casualty risks, while on the large loss side insurance-linked securities (ILS) capital sources ended up supporting roughly 20% of the large losses it experienced.

Global reinsurance giant Hannover Re reported its third-quarter and nine month results today and perhaps the most notable aspect of them for the insurance-linked securities (ILS) community is that the company has reported a slight shrinking in the amount of its large losses ceded to insurance-linked securities (ILS) capital sources.

Broking giant Aon and fronting specialist Clear Blue Insurance have put their trading relationship first to reach an out of court settlement in relation to a lawsuit over the reinsurance letter of credit (LOC) fraud perpetrated by insurtech Vesttoo, Artemis has been told by a number of market sources.