K Cession

Hannover Re acknowledges reinsurance pricing is declining fastest in property catastrophe risks, but the company continues to find some growth opportunities here and expects price reductions will begin to decelerate now that rates have come down for two consecutive years, Sven Althoff said today.

Executives from global reinsurance firm Hannover Re said today that there is no sign of new capital in the reinsurance market aside from through the catastrophe bond sector and some unlocked trapped collateral, and also discussed the Baltimore Bridge collapse saying that retrocession recoveries are anticipated.

Hannover Re’s CFO Clemens Jungsthöfel revealed that the reinsurance company is anticipating a gross loss from hurricane Ian of close to EUR 400 million, excluding effects from its ILS fronting business, which suggests as much as EUR 124 million in losses will be shared with retrocessionaires.

Global reinsurance firm Hannover Re has increased the size of its regular K-Cession capital markets retrocession placement to $600 million for 2018, as the reinsurer continued to leverage ILS funding as a source of protection and to augment its own capacity.

German reinsurer Hannover Re have again utilised the capital markets for their retrocession renewal through their proportional retrocession programme which they call K Cession. Previously called K6, Hannover Re have been bringing retrocessional risks to capital markets investors since as far back as 1995.