Retrocession news

Having completed another collateralised stop-loss transaction, to bring more efficient capital into its business, Swiss Re may be nearing the limits of its appetite for this type of arrangement, while the sophistication required means not every reinsurer could replicate this deal.

Neville Ching, the former retrocession managing partner at brokerage Capsicum Re, has formally launched ReFlex Solutions Ltd, an independent reinsurance brokerage headquartered in Bermuda with a mission to bring distribution efficiencies and efficient capital to market.

Global reinsurance giant Swiss Re has secured another $700 million of alternative capital protection for severe underwriting losses, through another collateralised stop-loss arrangement using its Matterhorn Re SPI, with the funding led by investment bank J.P. Morgan.

Speaking with Artemis, Hannover Re senior executives Silke Sehm and Henning Ludolphs explained that tapping into the insurance-linked securities (ILS) market for cyber retrocessional reinsurance capacity is a priority and with a quota share already arranged, the next step is sponsoring the reinsurer’s first cyber catastrophe bond, details of the form were not revealed.

French insurer and reinsurer SCOR has reported a net combined ratio of 113.2% for its global P&C business in 2022 on the back of a high nat cat ratio, although its results show that the firm’s use of retrocession again helped to alleviate some of the burden of another year of high losses.

Insurance-linked securities (ILS) investment fund manager and collateralised reinsurance underwriter Elementum Advisors, LLC, has announced five promotions of current employees to Partner at the firm, and the addition of another leader to its Executive Committee.

Elementum Advisors, LLC, the insurance-linked securities (ILS) investment fund manager and collateralised reinsurance underwriter, is to benefit from a further $100 million investment into its range of ILS funds from stakeholder and key investor White Mountains.

The retrocession program of global reinsurance giant Munich Re has shrunk slightly for 2023 as the company navigated the challenging market environment, while still securing $513 million of collateralised capacity for its quota share sidecar vehicles.

Having successfully expanded its retrocessional reinsurance program at the January 2023 renewals, Bermuda-headquartered reinsurance company Conduit Re is keeping all retro options on the table, with catastrophe bonds one instrument it is keeping an eye on, according to Trevor Carvey, Chief Executive Officer.

At the January renewals, global reinsurance firm Hannover Re capitalised on its long-standing relationships with investors to grow its K-Cession quota share sidecar structure to a record size, ultimately helping the company do more to support its ceding clients demand for natural catastrophe capacity.