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).
Elementum Advisors, LLC, the insurance and reinsurance linked asset manager, has added some new investors to its high-yield insurance-linked securities (ILS) fund strategy in 2022, allowing the investment manager to capitalise on reinsurance market dislocation, according to Tony Rettino.
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Capital strength will support global reinsurance firms through the 2022 Atlantic hurricane season, according to Fitch Ratings, but a significant loss or number of major events could make things more challenging, something that the still limited amount of retrocession in the market could exacerbate, it seems.
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Specialty insurance and reinsurance underwriter the Canopius Group has entered the 144A catastrophe bond market for the first time, seeking $75 million or more in peak US catastrophe reinsurance protection with a debut Finca Re Ltd. (Series 2022-1) transaction.
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Global reinsurance giant Swiss Re appears to have had a very successful visit to the catastrophe bond market with its latest and US hurricane focused Matterhorn Re Ltd. (Series 2022-2) deal, upsizing the coverage it will provide to $200 million, while also getting the protection at lower than guidance pricing.
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On announcing the completion of the second catastrophe bond issuance domiciled in Hong Kong, the Insurance Authority’s CEO Clement Cheung explained that insurance-linked securities (ILS) are a focus as they gain increasing attention.
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AXIS Capital, the global specialty insurance and reinsurance underwriter, is back in the capital markets with what will be its sixth catastrophe bond, seeking at least $100 million of protection from a Northshore Re II Ltd. (Series 2022-1) issuance.
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The CATCo retrocessional reinsurance investment portfolio experienced more favourable development on a side pocket set for the 2019 underwriting year before its final winding down and distribution of the remaining capital to investors was complete.
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Global reinsurance giant Swiss Re is making headway with the issuance of its newest catastrophe bond, the $150 million targeted US hurricane focused Matterhorn Re Ltd. (Series 2022-2) deal and it seems zero-coupon and multi-year protection are proving most economical.
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Having recently completed the sponsorship of its first ever catastrophe bond, Hong Kong headquartered global reinsurer Peak Reinsurance Company (Peak Re) wants to play an important role in helping to develop Asia’s insurance-linked securities (ILS) market and building regional resilience.
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Global insurance and reinsurance company Everest Re is back in the catastrophe bond market, seeking $250 million or more in industry loss based aggregate retrocession, through a new Kilimanjaro III Re Ltd. (Series 2022-1) transaction.
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