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).
A very interesting new insurance-linked securities (ILS) transaction has been launched to investors we’re told, in the shape of a $100 million Stratosphere Re Ltd. (Series 2020-1) catastrophe bond that we’re told will provide a source of reinsurance to cover certain primary insurance tail risks that were underwritten by and for ILS fund manager Nephila […]
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Investors are circling shares in retrocessional reinsurance investment manager Markel CATCo’s listed insurance-linked securities (ILS) fund, partly due to share price increases experienced in recent weeks, but also over the potential for subrogation to benefit any holdings they have.
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Global reinsurance giant Munich Re’s NatCat service has released estimates for the industry insured losses from Japanese typhoons Hagibis and Faxai, pegging them at $10 billion and $7 billion respectively.
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Insurance-linked securities (ILS) fund participation in the reinsurance renewals for continental European countries was particularly low in January 2020, as the low levels of pricing seen proved challenging for ILS strategies yet again.
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Global reinsurance firm Hannover Re is back in the catastrophe bond market to source a slice of retrocessional coverage, with a $100 million or greater international multi-peril 3264 Re Ltd. (Series 2020-1) cat bond transaction.
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Neon Underwriting, the specialty insurance and reinsurance operation that is part of American Financial Group, Inc., is to go into run-off, as its parent decided that it isn’t generating a sufficient return on its investment through its participation at Lloyd’s.
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Rates-on-line for non-marine retrocessional reinsurance contracts were up by as much as 40% in the January 2020 renewals, as the segment experienced significant volatility, according to Hyperion X data.
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Insurance and reinsurance companies in Bermuda have been using increasing amounts of reinsurance, in particular property catastrophe, quota shares and property per risk contracts.
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A number of insurance-linked securities (ILS) fund managers have adjusted their Japanese typhoon Hagibis loss reserves or side pockets in November, resulting in some positive and negative movements, we understand.
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The General Insurance Association of Japan (GIAJ) has updated its numbers on recent catastrophes, now saying that domestic insurers in the country have paid out US $6.83 billion in claims for typhoon Faxai, typhoon Hagibis and a heavy rainfall event that closely followed these storms.
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