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).
Elementum Advisors, LLC, the insurance-linked securities (ILS) fund management and collateralised reinsurance underwriter, has announced the launch of a new higher risk investment strategy that will have a retrocession focus.
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Global specialty insurance and reinsurance group Canopius has expanded the utility and importance of its Bermuda reinsurance and insurance-linked securities (ILS) platform, reclassifying its reinsurer Canopius Re to have a Class 4 Reinsurer licence.
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Trapped capital is expected to remain and pose an ongoing challenge for some investors and managers from across the insurance-linked securities (ILS) space, according to executives at Willis Re, the reinsurance arm of broker Willis Towers Watson (WTW).
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New capital helped to mitigate the dislocation of global reinsurance markets at the key January 2021 renewal season, with ample supply to meet cedent demand, while there is an expectation that additional new capital comes on-stream early this year.
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Global reinsurance capital levels returned to their pre-pandemic high at $625 billion by the end of September 2020, with a slight rise in alternative reinsurance capital recorded during the third-quarter by broker Aon.
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A shift towards underwriting more reinsurance business on a quota share basis could matter more for the forward-profits of many large reinsurers in 2021, than the lower-than hoped for rate increases in excess-of-loss treaty pricing, analysts at Barclays said in a report yesterday.
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With the January 2021 renewals of reinsurance and retrocession programs supposed to be allocated, signed and all but completed by now, we’re told that this year there is still more work to do in working out shares of certain layers of retro towers.
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We spoke with Tom Johansmeyer, Head of PCS, today, to discuss the rioting and civil disturbance seen at the US Capitol buildings on January 6th 2021.
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At the January 2021 reinsurance renewals, property rate increases were seen to be at the lower end of expectations, while property retrocession rates also didn’t firm as much as anticipated, broker Guy Carpenter has confirmed.
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Close to US $20 billion of new capital was raised by the global reinsurance market and new start-up entrants in 2020 and there is more to come in 2021, as the need for capital persists, according to David Flandro of HX Analytics.
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