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 average return of insurance-linked securities (ILS) funds tracked by the Eurekahedge ILS Advisers Index reached 1.16% for January 2024, which was a “particularly high” performance for what is often a slower month lacking in peak peril seasonality.
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Insurance-linked securities (ILS) and alternative reinsurance capital structures may continue to be the primary source of new reinsurance capacity through 2024, according to analysts at Bloomberg Intelligence.
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With the recent successful completion of its fifth catastrophe bond in the Herbie Re series of deals, Fidelis Insurance Group finds the cat bonds offer a “critical component” of its capital management and protection arrangements, Ian Houston, Chief Underwriting Officer has said.
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Insurance-linked secuities (ILS) market participants are seeing a demand-driven opportunity emerge in collateralized reinsurance and retrocession, but speakers at our recent ILS NYC 2024 conference said that while investor demand for returns from these products is rising again, the clarity of coverage terms is key.
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There are benefits to sponsoring a catastrophe bond in the way it allows ceding companies to stagger their reinsurance or retrocession renewals across the year, according to Conduit Re CEO Trevor Carvey.
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The catastrophe bond market saw a more stable pricing environment in the fourth-quarter of 2023, as the trend towards tighter pricing that had begun earlier in the year slowed down, Aon Securities has said.
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Fidelis Insurance has now finalised its latest catastrophe bond Herbie Re Ltd. (Series 2024-1) to provide the originally targeted $150 million of industry-loss triggered retrocession, but at significantly reduced pricing as the spreads fell to the bottom of the twice reduced range.
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Swiss Re’s specialist insurance-linked securities (ILS) and third-party reinsurance capital management division, Alternative Capital Partners (ACP), has reported a 68% increase to its fee income earned for the full-year 2023, reaching $195 million.
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Fidelis Insurance has lowered the spread guidance for its new catastrophe bond issuance for the second time, now aiming to secure the targeted $150 million of industry-loss triggered retrocession from the Herbie Re Ltd. (Series 2024-1) cat bond at a pricing level further below the initial guidance.
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Having been out in the catastrophe bond market with its latest issuance for a fortnight, specialty insurance and reinsurance company Fidelis Insurance has now lowered the guidance for the deal, aiming to secure the targeted $150 million of industry-loss triggered retrocession from the Herbie Re Ltd. (Series 2024-1) cat bond at pricing below the initial […]
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