All of our news and analysis on the retrocessional reinsurance marketplace.
Retrocession is effectively reinsurance for reinsurers, so a tertiary layer of risk transfer away from the original risk, if you consider primary, reinsurance and then retrocession.
As reinsurance is insurance for insurers, retrocessional, or retro, protection is reinsurance for reinsurers.
The retrocession reinsurance market has increasingly come to depend on the capital markets and insurance-linked securities (ILS).
As of mid-year 2022, global retrocession capacity has been estimated to be as high as $60bn, around $20bn of which is indemnity based and the rest in other formats.
The alternative capital markets and ILS funds, or investors, play a significant role in global retrocession, as too do instruments such as catastrophe bonds and industry-loss warranties (ILW).
Catastrophe bonds covering pure European windstorm risks are not expected to face any direct losses after the last few days of severe storms that blew across the continent, but there are implications for aggregate retrocession cat bonds, according to Plenum Investments.
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Global reinsurance company Hannover Re is forecasting a record year for the insurance-linked securities (ILS) market in 2022, with continued expansion of the sponsor-base outside of insurance and reinsurance markets expected.
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AIG Re, the global reinsurance arm of American International Group (AIG), pulled-back on its writings of peak zone property catastrophe risks at the January 2022 renewals, as the company did not feel the risk-adjusted returns were adequate.
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Investors in the Markel CATCo retrocession and reinsurance investment funds are being urged to vote in favour of moving the buy-out process forwards at meetings to be held on March 4th, putting the end of this chapter in sight.
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Pool Re, the UK government-supported mutual terrorism reinsurance provider, is back in the catastrophe bond market and seeking a UK £75 million (approx. US $102m) renewal of its landmark terror catastrophe bond, with a Baltic PCC Limited (Series 2022-1) cat bond issuance.
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A settlement is being negotiated between parties in a Florida fraud lawsuit lawsuit involving former CATCo CEO Tony Belisle, with the proceedings stayed until May to allow for the negotiations to continue.
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At a directions hearing held in a Bermuda Court yesterday, the judge ruled that meetings of buy-out scheme creditors in the Markel CATCo Investment Management operated retrocessional reinsurance funds be held.
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The level of litigated claims is on the increase in Florida despite legislative efforts to stem the tide, leading Wesley Todd, CEO of CaseGlide to say the trend is “concerning”, after new litigated claims jumped 37% month-on-month in January 2022 for Florida’s largest P&C insurers.
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The Florida reinsurance renewals at June 1st 2022 could see opportunities emerge to selectively underwrite some retrocession contracts, as that segment of the market is expected to remain dislocated through the first-half of the year, according to commentary from Everest Re.
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Reinsurance rates and pricing may rise faster than primary insurance through 2022 and 2023, according to a bullish forecast from analysts at investment bank Goldman Sachs.
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