Reinsurance sidecars news

A combination of forces coalesced in the second-half of 2020 which served to reduce demand for retrocession capacity at 1/1, resulting in a less constrained marketplace than initially expected, according to James Vickers, Chair of Willis Re International.

CCR Re, the French state-owned reinsurance firm, has renewed its 157 Re collateralised reinsurance sidecar vehicle for 2021 at an unspecified size.

Peak Reinsurance Company Limited (Peak Re), the Hong Kong headquartered global reinsurer that is majority backed by Fosun International, has renewed its collateralised reinsurance sidecar vehicle Lion Rock Re Ltd. for the third year in succession.

Munich Re has now completed the usual two tranche issuance for the renewal of its fully collateralized reinsurance sidecar vehicle Eden Re II Ltd., with the amount of capital backing the sidecar for 2021 down some 18% at $235 million.

Global specialty insurance and reinsurance group Canopius has expanded the utility and importance of its Bermuda reinsurance  and insurance-linked securities (ILS) platform, reclassifying its reinsurer Canopius Re to have a Class 4 Reinsurer licence.

As a group, the assets under management of the top-tier of insurance-linked securities (ILS) investment fund managers had increased through the second-half of 2020, Artemis’ data shows.

Global reinsurance capital levels returned to their pre-pandemic high at $625 billion by the end of September 2020, with a slight rise in alternative reinsurance capital recorded during the third-quarter by broker Aon.

The Bermuda Stock Exchange (BSX) has listed almost 100 more insurance-linked securities (ILS) and catastrophe bond tranches during the record-breaking issuance year of 2020, than it did in the prior year.

RenaissanceRe, the Bermuda headquartered global reinsurance company, had lifted the amount of assets managed within its third-party capital, joint venture and managed insurance-linked securities (ILS) fund vehicles to $6.9 billion by October 2020, with these structures now getting close to equalling the reinsurers own capital base.

A shift towards underwriting more reinsurance business on a quota share basis could matter more for the forward-profits of many large reinsurers in 2021, than the lower-than hoped for rate increases in excess-of-loss treaty pricing, analysts at Barclays said in a report yesterday.