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).
Private ILS funds that allocate to collateralised reinsurance instruments other than catastrophe bonds, are now accelerating their 2023 returns over the group of pure cat bond funds in the Eurekahedge ILS Advisers Index after September’s results.
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Allied World Assurance Company (AWAC), the global insurance and reinsurance company that is part of the Fairfax Financial group, has returned to the catastrophe bond market looking to renew its maturing deal, seeking a larger $250 million of protection with this 2001 CAT Re Ltd. (Series 2023-1) transaction.
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It’s become apparent that PGGM, the Dutch pension fund investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, added a new ILS manager to its allocation list in 2022, with an investment into a fund managed by Integral ILS.
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Signal Iduna Reinsurance Ltd. (SI Re), the Swiss based reinsurer located in the city of Zug, has announced the promotion of current head of ILS Markets & Retrocession Dr Robert Salzmann to become the firm’s Head of Underwriting as well as his current responsibilities.
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Concerns are being voiced over the way reinsurance capital has moved further away from secondary perils, as well as the reduction in available aggregate coverage, which perhaps led Aon to state in a recent report that this is a critical area where innovative efforts may be able to fill some of the reinsurance protection gaps […]
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Analysts at investment bank Goldman Sachs say that, while the supply of capital to the global reinsurance market is generally healing, this process has likely been slowed somewhat by the recent further increase to US interest rates.
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PGGM, the Dutch pension fund investment manager that allocates the largest amount to the insurance-linked securities (ILS) market on behalf of end-client the Dutch pension PFZW, now looks after a portfolio that was valued at just over US $8.8 billion (EUR 8.1bn) at the mid-point of 2023, which has grown further above its strategic allocation […]
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Private ILS funds, so those allocating to collateralised reinsurance and instruments other than catastrophe bonds, saw a very strong August as seasonality boosted the average returns of this segment of the market to 1.67%, according to ILS Advisers.
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Stone Ridge Asset Management, the New York based asset manager an alternative risk premia focus, has clearly demonstrated a strong return to growth for its mutual insurance-linked securities (ILS) fund strategies, adding 24% in ILS assets in the last quarter of record and with its cat bond focused strategy reaching a new high of $2.1 […]
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Investor interest in insurance-linked securities (ILS), particularly on the private ILS and reinsurance side of the market, can be enhanced with a continuation of the prudent approach to underwriting currently being seen, Marcel Grandi, Head of ILS Sourcing at Twelve Capital told us.
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