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).
Validus, the Bermuda headquartered reinsurance underwriting arm of AIG, has returned to renew its Tailwind catastrophe bond protection, with a $275 million or larger Tailwind Re Ltd. (Series 2022-1) transaction in the market, through which it is seeking a source of aggregate retrocession.
Read the full article
Optimism over reinsurance renewal rate increases is said to be rising, as the market deals with a significantly delayed renewal timeline, for which a lack of aggregate retrocession capacity and trapped insurance-linked securities (ILS) capital are two of the drivers.
Read the full article
Progress in the buyout of investors in the Markel CATCo Investment Management retrocessional reinsurance investment funds is unlikely to be made until next year now, as the investment manager said a court decision is unlikely to come until January 22nd 2022.
Read the full article
A new report details an opportunity to create insurance solutions to underpin the nature-based carbon market and suggests that securitizing them would be a way to unlock new capital, while feeding investors appetites for insurance-linked investments and an environmental, social and governance (ESG) appropriate asset.
Read the full article
The global reinsurance market outlook remains stable, thanks to positive pricing momentum, improved market discipline and rising demand, according to rating agency AM Best.
Read the full article
Property catastrophe reinsurance rates are forecast to rise by more than 10% at the upcoming January 2022 renewal season, according to rating agency Fitch.
Read the full article
Global reinsurance firm Hannover Re has returned to the catastrophe bond market in search of a collateralized source of worldwide peak peril annual aggregate and industry loss based retrocessional reinsurance protection, with a $100 million or greater 3264 Re Ltd. (Series 2022-1) cat bond deal.
Read the full article
Reducing or controlling exposure to catastrophe risks is seen as the most important driver of reinsurance buying decisions for the January 2022 renewal season, according to hundreds of respondents to our recent market survey.
Read the full article
Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has announced the launch of Tremor Fetch™, a piece of functionality that will allow placement participants and capacity to follow the consensus market clearing price.
Read the full article
Global reinsurance firm Swiss Re is back in the catastrophe bond market for its first issuance under the Matterhorn Re program of 2021, with a target to secure $150 million or more of catastrophe retrocession through a Matterhorn Re Ltd. (Series 2021-1) transaction, this publication has learned.
Read the full article
