Retrocession news

Global reinsurance company Swiss Re has again returned to the catastrophe bond market for what will be its fifth time in just around one-year, this time bringing a targeted $200 million Matterhorn Re Ltd. (Series 2020-4) with which it hopes to secure retrocessional protection against hurricane losses.

Lancashire Holdings, the specialty insurance and reinsurance group with a third-party capital management platform, is set to raise around $365 million through a share placement, citing opportunities in the currently hardening market environment.

Lockton Re, the reinsurance broking arm of the privately held and independent intermediary, has hired well-known London market retrocession broker Matt Foreman, as the company starts to build-out a new retro practice.

Insurance-linked securities (ILS) and capital markets backed sources of insurance or reinsurance capacity should play a role in any government or industry supported pandemic risk pooling facility or backstop, respondents to our latest survey said.

More predictable and transparent insurance-linked securities (ILS) structures, offering less ambiguous coverage, may be the immediate winners after the Covid-19 pandemic crisis, with catastrophe bonds and industry loss warranty (ILW) contracts an area set to receive increasing investor focus, according to S&P.

During a period of broad financial market dislocation, the catastrophe bond space continues to exhibit resilience, and in the current operating landscape, the attractiveness of the asset class is enhanced, according to Luca Albertini of Leadenhall Capital Partners LLP.

The rioting and civil commotion across the United States in recent days is thought likely to cause insurance market losses of as much as $1 billion, but with retentions generally quite high on exposed programs, carriers may not be able to pass on too much of their losses to reinsurance capital.

Global insurance and reinsurance group Everest Re made increased use of its Mt. Logan Re Ltd. collateralized reinsurance sidecar-like vehicle in the first-quarter of 2020, with premiums ceded to the structure rising 38% year-on-year.

Rioting and civil commotion across the United States has now been designated as a catastrophe event in multiple-states by PCS, the first time the industry loss data aggregator has done so in its history.

Third Point Re, the Bermuda headquartered, hedge fund backed global reinsurance firm, aims to find opportunity in any dislocation seen across retrocession and ILS markets, as it stands ready to deploy more capacity into catastrophe retro renewals, its CEO told us.