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).
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.
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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.
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Insurance-linked securities (ILS) investment manager Nephila Capital has significantly increased the level of catastrophe exposed property premiums it receives through programs and fronting platforms operated by its parent Markel in 2022.
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Reinsurance broker Gallagher Re has appointed industry-loss warranty (ILW) and retrocession broker Alex McManus to lead its index-based capabilities in Bermuda.
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In order for capital to flow more meaningfully back into insurance-linked securities (ILS), John Dacey, the CFO of global reinsurance firm Swiss Re, said that the industry needs to better address investor concerns over climate change impacts to nat cat risk.
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The CATCo retrocessional reinsurance investment portfolio has experienced additional favourable development in the final quarter of 2022, with the net asset values (NAV’s) increasing again as side pocket loss reserves continue to prove to have been set conservatively.
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Global reinsurance company Swiss Re grew its collateralized reinsurance sidecar and insurance-linked securities (ILS) fund assets under management by 29% in 2022, lifting the third-party investor total to $2.9 billion.
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The recent devastating earthquakes in Turkey are estimated as likely to cause an insurance and reinsurance market loss of around US $2.4 billion by catastrophe risk modeller Karen Clark & Company.
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The market for catastrophe bonds is expected to see increasing levels of issuance and the hardening of reinsurance rates is one factor that could drive the market in 2023 and beyond, alongside a general uptick as exposures rise and large insurance and reinsurance firms continue to source risk capital from institutional markets, DBRS Morningstar has […]
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While new capital was seen to flow to some retrocessional reinsurance opportunities around the January 2023 renewals, the pace is not keeping up with outflows or demand for protection, Aon’s Reinsurance Solutions explained recently.
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