Retrocession news

French reinsurer SCOR is lifting its target for premiums underwritten at its property and casualty re/insurance division, as it looks to take advantage of harder market conditions, which will result in an increase to its Nat Cat budget for 2022 and the company said it will need to further optimise its retrocession as well.

Despite feeling that reinsurance and ILS pricing has not risen by as much as it should have, Niklaus Hilti, Head of Insurance Linked Strategies at Credit Suisse Asset Management, believes that the market has largely displayed very high levels of discipline lately.

Helped by a record period of catastrophe bond issuance in the first-half of 2021, alternative capital levels in reinsurance, largely in insurance-linked securities (ILS) formats, have now returned to their previous record year-end level of $97 billion, according to Aon.

Global reinsurance firm Swiss Re has continued to add to its growing haul of alternative capital, as its insurance-linked securities (ILS) management operations expand, and now the company targets continued growth, aiming to become the “best integrated capital franchise”, according to Philipp Rüede, Head of Swiss Re’s Alternative Capital Partners (ACP) unit.

Global insurance and reinsurance company Everest Re has announced a new President for its Mt. Logan Re Ltd. collateralized reinsurance sidecar-like vehicle, hiring well-known insurance-linked securities (ILS) focused executive John Modin from Citigroup for the role.

As hurricane Ida moves closer to making landfall in Louisiana today, as a strong Category 4 storm with sustained winds of around 150 mph, Plenum Investments has said that minor impacts to its range of catastrophe bond funds are expected if Ida continues on the forecast track.

We’re told that insurance-linked securities (ILS) fund managers are anticipating some aggregate deductible erosion of certain ILS or catastrophe bond positions, due to the effects of one of the largest natural catastrophe losses in years striking Europe, the severe flooding in July, plus the accelerating wildfire season across the United States.

Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has launched a new feature of its Panorama risk marketplace, offering clients SurveyorTM, which allows for multiple structures and perils to be priced and placed efficiently at the same time.

Reinsurance rate increases are expected to continue at the all-important January 2022 renewal season, but their amount is expected to be reduced to high single-digit to low double-digit levels, as rate adequacy may be approaching for major reinsurers, Fitch Ratings has said.

Recent changes made by the Bermuda Monetary Authority (BMA) to improve processes specific for catastrophe and mortgage bonds, shows that the island is listening to its clients and being more adaptive in the face of growing competition, according to Brad Adderley, Partner at global law firm Appleby.