Third-party reinsurance capital news

Having significantly increased the amount of risk it cedes to retrocession partners at the start of this year, Hannover Re is now looking at the flexibility it has in the retro program and may opt to cede less to proportional retrocession partners next year, one of its Board Members said today.

Vesttoo is now insisting that there is value recoverable in some reinsurance transactions that were “bona fide”, while at the same time both Vesttoo as the debtor and the creditor committee in the Chapter 11 bankruptcy case, have objected to the US Trustees move to convert that case to a Chapter 7 focused on a […]

According to Hiscox Group’s interim statement this morning, the firm’s insurance-linked securities (ILS) fund management unit, Hiscox ILS, has delivered record fund performance so far in 2023, while maintaining stable assets under management (AUM) in the third-quarter.

Reinsurance sidecar vehicles are in favour right now, with investors liking the certainty they provide in terms of duration and seeing them as an attractive way to capitalise on a hard reinsurance market that is of unknown duration, while the returns are clearly much-improved as the majority are pitching 20% plus returns.

According to RenaissanceRe’s CEO Kevin O’Donnell, with the acquisition of AIG’s reinsurance businesses under the Validus brand now complete, the insurer remains on-track to invest $500 million into two of the RenaissanceRe Capital Partners vehicles.

As we reported over a week ago, Vesttoo, the insurtech at the centre of an international reinsurance letter of credit (LOC) fraud investigation, is trying to sell off assets of the firm, to realise value it believes is inherent in the business.

Markel has reported that it recognised a $25 million credit loss against a fraudulent $50 million letter of credit (LOC) for reinsurance provided by insurtech Vesttoo, and suggested a chance that more could come with a second LOC also found fraudulent.

Bermuda based reinsurance firm and third-party capital management specialist RenaissanceRe saw the fee income earned through its Capital Partners joint-ventures and ILS funds soar in the third-quarter, as management fees rose on the back of higher assets, while performance fees roared back in the period.

RenaissanceRe, the Bermuda based reinsurance and third-party capital management specialist, has now completed its acquisition of the Validus reinsurance business from AIG, including the insurance-linked securities (ILS) unit AlphaCat.

Tenax Capital, the London based hedge fund investment manager that operates a catastrophe bond strategy, has joined the insurance-linked securities (ILS) industry working-group that focuses on enhancing environmental, social and governance (ESG) transparency in the ILS market.