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).
RenaissanceRe, the Bermudian reinsurer and third-party reinsurance capital management veteran, is set to acquire the Tokio Millennium Re reinsurance operations of Japanese giant Tokio Marine, in an acquisition valued at $1.5 billion that brings together an ILS capital manager and a leading reinsurer that also operates as an ILS facilitator.
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Blue Capital Reinsurance Holdings Ltd., the stock exchange listed, collateralized reinsurer owned by Sompo International Holdings Ltd., has reported a loss for the third-quarter of 2018 but forecasts a more stable market pricing environment ahead.
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The integration of insurance-linked securities (ILS) and alternative sources of capital into the Bermuda market is clearly shown in the declining retention rate of insurance and reinsurance firms, which are sharing increasing amounts of risk with ILS investors in order to earn fee income, according to Kroll Bond Rating Agency (KBRA).
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SCOR continues to make progress towards its full year targets, but its third-quarter was hit by a larger than expected catastrophe loss load, as the reinsurance firm dealt with impacts from hurricane Florence, typhoon Jebi, typhoon Mangkhut and other events.
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RKH Reinsurance Brokers (RKH RB), part of the global Hyperion Insurance Group, has hired Dave Saxton from Steadfast Re to its London operations, we have learned, a move which brings additional treaty, ILS and collateralised market broking expertise to the firm.
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RenaissanceRe, the Bermudian reinsurer and third-party reinsurance capital manager, has announced an estimated net negative impact of $155 million from catastrophe events in the third-quarter, which suggests some of these losses will flow to investors in the firms third-party capital vehicles.
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Markel CATCo Investment Management Ltd., the retrocessional reinsurance investment specialist, has revealed that its stock exchange listed CATCo Reinsurance Opportunities Fund is exposed to potential losses from hurricane Michael and typhoon Jebi.
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Global reinsurance company Swiss Re has estimated that its third-quarter 2018 large loss burden will amount to roughly $1.4 billion after retrocession, with natural catastrophes driving the majority and typhoon Jebi the most costly event of the quarter.
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Blue Capital Reinsurance Holdings Ltd., the listed, collateralized reinsurance vehicle owned by Sompo International Holdings Ltd., has revealed that it continued to feel the effects of hurricane Irma during the third-quarter with loss creep from the storm set to outweigh the costs of any catastrophe activity that occurred during the period.
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Lutece Investment Management Ltd., a retrocession and reinsurance focused specialist investment manager, has added another senior hire in Cornell Fox (who was previously at AlphaCat and Validus) who joined the firm in recent weeks in the role of Head of Investor Relations.
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