Retrocession news

On Monday November 1st 2021 at the United Nations (UN) Framework Convention on Climate Change Conference of the Parties (COP26) in Glasgow, United Kingdom, it became clear that this is a moment in time where the insurance, reinsurance and insurance-linked securities (ILS) industries have an opportunity to display climate leadership.

Investors in the Markel CATCo Investment Management retrocessional reinsurance investment funds now stand to receive as much as 18.5% more in capital return, on the back of the updated and improved buyout terms.

Catastrophe bond and related insurance-linked securities (ILS) new issuance has now reached $17 billion in 2021, setting a new annual record for the total tracked by our Artemis Deal Directory.

The United Kingdom has become the first G20 country to make climate disclosure mandatory for its largest companies, with Task Force on Climate-Related Financial Disclosures (TCFD) aligned reporting set to be required of over 1,300 of the largest UK-registered companies and financial institutions by April 2022.

Investors in Swiss Re’s collateralised reinsurance sidecars were likely relieved when they saw the reinsurers loss picks for hurricane Ida and other recent catastrophe events, according to CFO John Dacey.

The United Kingdom’s Prudential Regulatory Authority (PRA), part of the Bank of England, has published its second climate change adaptation report and featuring heavily in it is the subject of whether new or additional capital requirement charges may be needed as a result of climate change.

Global reinsurance company SCOR is set to take a range of actions to lower its catastrophe volatility in the United States and will look to alternative retrocession products for 2022, as the company acknowledges capacity for certain retro solutions may be more limited, according to Jean-Paul Conoscente, CEO of SCOR Global P&C.

While growing its business substantially again in the third-quarter, it seems that global insurance and reinsurance company Everest Re ceded more of its written premiums to reinsurance capacity, either to third-party capital investors in Mt. Logan Re, or its retrocessionaires, as the significant catastrophe losses drove it to an underwriting loss for the third-quarter of […]

With rising catastrophe losses impacting insurance and reinsurance markets, S&P Global Ratings believes that use of insurance-linked securities (ILS) is going to increase.

Property catastrophe reinsurance rates are expected to increase by double-digits in 2022, as reinsurers absorb and then react to the costs of more natural catastrophe loss events that are deemed linked to climate change, according to rating agency Fitch.