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).
Reinsurance and retrocession cedents have been trapping increasing amounts of ILS collateral for longer periods of time than in the past, broker Aon said, as uncertainty over loss creep from catastrophe events has driven them to be more cautious.
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Retrocessional reinsurance investment manager Markel CATCo is proposing to make compulsory redemptions or buy-backs of some of the remaining shares of its listed and in run-off investment strategy the CATCo Reinsurance Opportunities Fund Ltd.
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TigerRisk Partners LLC, the global risk, capital and reinsurance brokerage and advisory, has announced the hiring of Bermuda-based Chris Conway, who joins the firm’s reinsurance and retrocession broking team on the island.
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The use of rented transformer platform structures for insurance-linked securities (ILS) and private catastrophe bond transaction issuance continues to expand and a new Isosceles Re offering from Marsh & McLennan Companies and reinsurance broker Guy Carpenter is set to help make issuance of 4(2) securities more simple.
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Catastrophe bond spreads are back at levels not seen for at least five years and specialist insurance-linked securities and reinsurance investment manager Twelve Capital believes they have further to go in 2020, making this a compelling year for investors to allocate to the sector.
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Lancashire Capital Management Limited, the third-party capital collateralised reinsurance underwriting arm of specialty insurance and reinsurance group Lancashire Holdings, grew roughly 20% during 2019, to enter the 2020 renewal season with somewhere north of an estimated $600 million of limit available to deploy.
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Having brought together its insurance-linked securities (ILS) and retrocessional reinsurance activities last year, global firm Swiss Re expects to remain a major player in the alternative capital space, its CFO said yesterday.
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TransRe, the reinsurance arm of Alleghany Corporation, is able to “punch above its weight” in the global reinsurancem market, thanks to its access to efficient third-party capital, Alleghany CEO Weston Hicks said.
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Rates and pricing at the upcoming April 1st 2020 renewals of Japanese reinsurance programs could see increases of roughly double the magnitude seen a year ago, with increases of 40% to 50% seen as possible in some loss impacted areas of the market, analysts at JMP Securities have said.
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Lancashire Capital Management Limited, the third-party capital collateralised reinsurance underwriting arm of specialty insurance and reinsurance group Lancashire Holdings Limited, expects to deliver an impressive mid-teen return to its investors from its investment strategy for 2019.
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