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).
The resilience of the global reinsurance market “shone through” at the January 2021 renewals, which broker Willis Re says were less onerous than feared for ceding companies.
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The January 2021 reinsurance renewals are approaching completion and it looks as if third-party and collateralized sources of reinsurance and retrocession capacity have played a key role again, with capital markets sources of funding growing across the marketplace.
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A number of insurance-linked securities (ILS) funds invested into collateralised reinsurance positions that are exposed to catastrophe events in Australia have reported negative performance for November on the back of reserving for hail storms and severe weather, we understand.
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A new Singapore domiciled insurance-linked securities (ILS) transaction has come to light, after a recently registered Special Purpose Reinsurance Vehicle named Phoenix 1 Re Pte. Ltd. issued and listed almost $42.14 million of private ILS notes.
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Catastrophe bond market activity will remain busy through 2021, with an expectation that issuance could reach as much as $12 billion, so beating the record set this year, as the high number of maturing cat bonds are seen as likely to be renewed and more new sponsors may also be seen.
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New Incorporated Segregated Accounts Companies (ISAC) available under Bermuda law and regulation, will enable insurance-linked securities (ILS) managers, or investors, to operate both underwriting and investment fund activities within a single company structure.
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Global reinsurance firm Hannover Re had its ratings affirmed by AM Best yesterday and the agency cited the companies retrocession program as “pivotal” to its success.
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The alternative reinsurance capital and insurance-linked securities (ILS) sector may return to growth in 2021, but it may be slower than some expect, according to analysts at RBC Capital Markets.
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The latest catastrophe risk stress testing analysis by the Bermuda Monetary Authority (BMA), of its property and casualty insurance and reinsurance market, shows up some interesting trends in the use of specific types of hedging, reinsurance and retrocession arrangements.
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The Association of Bermuda Insurers and Reinsurers (ABIR) has announced new members for 2021 coming from across the spectrum of reinsurance and third-party capital or ILS fund management.
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