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).
Winter storm Uri’s impacts in the first-quarter of 2021 was a step backwards for the insurance-linked securities (ILS) market and the sectors biggest dedicated investment manager Nephila Capital, according to Markel Corporation Co-CEO Richie Whitt.
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Recent low rates and strong execution in the catastrophe bond market is not the only thing weighing on reinsurance rates around this mid-year renewal season, there is also start-up and newly raised capital to consider.
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As part of the latest Artemis Live webcast, industry experts argued that utilizing technology will be critical in enabling the reinsurance and alternative capital markets, or ILS sector, to help hedge pandemic risk using parametric solutions.
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Primary insurers in Florida and elsewhere that are renewing their reinsurance programs for June 1st 2021 are set to come out of the renewal season largely unscathed, as reinsurance pricing faltered and came in below expectations, analysts at JMP Securities have confirmed.
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While the catastrophe bond market has been first to experience investor-demand and capacity driven softening, as spreads have increasingly tightened on primary issues over recent months, this isn’t yet reading across to the entire collateralized reinsurance market at the mid-year renewal season, we’re told.
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ERS ILS Ltd., the dedicated insurance-linked securities (ILS) management division of specialty insurance and reinsurance player ERS, is set to benefit from climate-finance prediction modeling and risk transfer analytics services provided by AbsoluteClimo and AKR Zell.
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Acacia Holdings Ltd, a specialist reinsurance and retrocession investment company that is backed by private equity specialist Oaktree Capital Management, L.P., has announced the hiring of Lawrence Cheng as its Chief Underwriting Officer (CUO).
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Analysts at Keefe, Bruyette & Woods conclude from market feedback that the upcoming June 1st reinsurance renewals are set to be “satisfactory but unspectacular” but that P&C reinsurance rate increases will persist, perhaps for more than two years.
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Issuance of new catastrophe bonds and other related insurance-linked securities (ILS) we track here at Artemis is now set to break new ground for the first-half of 2021, with more than $10 billion of issuance now anticipated, according to our latest data on the market.
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As the mid-year reinsurance renewals fast approach, insurance-linked securities (ILS) capital is once again cited in relation to a moderation of rate expectations, but this year investors are also seen to be more disciplined, analysts at Keefe, Bruyette & Woods have explained.
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