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).
Speaking to insurance-linked securities (ILS) funds and investors in 2022, the London insurance and reinsurance market is seen as a venue where deploying capital to access differentiated insurance or reinsurance-linked returns is increasingly attractive, but still ease of access is cited as a problem.
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Subrogation recoveries related to the February 2021 winter storm and Texas freeze losses are now being seen as increasingly possible, perhaps even likely, by our sources in reinsurance and insurance-linked securities (ILS) markets, as a lawsuit has been filed against ERCOT and many expect that some kind of payout will be the end result of […]
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The latest property insurance rate increase filings submitted by carriers in Florida are calling for really significant uplifts in pricing, suggesting the primary market still believes more rate is required to support sustainable profits, which implies reinsurance firming also needs to continue in the state.
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Insurance-linked securities (ILS) portfolios with predominantly catastrophe bond holdings have on average outperformed many mid- and higher-risk ILS fund strategies that contain private ILS transactions over recent years, according to analysis from Frontier Advisors.
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Reinsurance market pricing is expected to keep rising through 2022 at the renewals, but the rate of increase is expected to slow somewhat, by Fitch Ratings.
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Reinsurance as a sector and the major global reinsurers have suffered due to elevated catastrophe losses in recent years, but analysts at investment bank Berenberg believe that Hannover Re’s comprehensive retrocession program is giving investors confidence and helped to buoy its share price in 2021.
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Global reinsurance firm Swiss Re developed its 1863 insurance-linked securities (ILS) fund platform to be “investor friendly” and has attempted to address some of the “structural inefficiencies” often seen in ILS products, according to Martin Bisping, CEO of the reinsurers’ Swiss Re Insurance-Linked Investment Management Ltd (SRILIM) unit.
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The market for retrocessional reinsurance has been one of the most capital constrained and loss impacted over the last few months, which has resulted in an adjustment to priorities for those writing retro covers, while buyers are having to adapt to the demands of capital.
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Alecta, which is the largest pension fund in Sweden, intends to take a long-term view on the insurance-linked securities (ILS) sector and according to a report is planning to make further investments into reinsurance related risks through ILS strategies.
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Litigated claims related to the assignment of benefits (AOB) have increased in Florida for property and casualty (P&C) insurers, according to the latest data from CaseGlide.
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