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 bond sponsors looking to locate their issuance structures in Bermuda can now benefit from much faster licensing and registration of new cat bond vehicles, with the process streamlined to take just three working days by the regulator.
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The catastrophe bond market “finds itself at a record-breaking pace” according to Aon Securities and this is expected to continue through the rest of 2021 and into next year, while keen pricing is also likely to remain a feature of new issuance.
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Having access to diverse and efficient sources of capital and ensuring they are treated as equal is increasingly a key trait of a successful reinsurance company, something the CEO of global player Everest Re clearly understands.
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We should expect accelerating catastrophe bond issuance from Asia’s ILS domiciles, more cat bond and insurance-linked securities sponsors to emerge from the region and a gradual increase in use of alternative reinsurance capital in Asia Pacific, according to Fitch Ratings.
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Isosceles Insurance Ltd., the private insurance-linked securities (ILS) and catastrophe bond issuance platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, has issued three new tranches of notes, that together total just over $32.75 million of private cat bond notes.
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After a particularly busy first-half of 2021 for catastrophe bond issuance, global reinsurance firm Swiss Re’s Capital Markets unit believes that a $50 billion market is possible by 2025 and that two drivers of further insurance-linked securities (ILS) market growth could be pandemic risk and ESG.
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Global reinsurance capital, from across traditional and alternative sources such as the insurance-linked securities (ILS) market, is particularly strong at this time, but rating agency Fitch explained in a new report that providers of it remain disciplined in their deployment of it.
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While catastrophe bonds have proven extremely attractive over the last year and a half and there has been an evident shift in some investor allocations to these more liquid insurance-linked securities (ILS), it is important to provide some context and explain that some investors are also shifting the other way.
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Global insurance and reinsurance company Everest Re ceded more written premiums to its Mt. Logan Re Ltd. collateralized reinsurance sidecar-like vehicle in the second-quarter of 2021, while at the same time a more benign catastrophe quarter appears to have resulted in fewer losses being ceded.
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American International Group (AIG) has continued to evolve its reinsurance business, both on an outwards and inwards basis, as the insurance giant secured new reinsurance protection at the middle of the year, while its ILS specialist unit AlphaCat has helped it lower its exposure to Florida property catastrophe risks, according to President and CEO Peter […]
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