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).
Catastrophe bond and insurance-linked securities (ILS) new issuance continues apace in 2021, with the total issued and tracked by Artemis so far this year now above $16.1 billion, meaning that a new annual issuance record is expected to be reached imminently.
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The Howden insurance and reinsurance broking group is expected to launch a new capital markets focused reinsurance unit in Bermuda and has hired Darren Redhead from Lancashire Capital Management to lead at least the third-party capital aspect of the initiative, it’s understood.
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Reinsurance firms divergent attitudes towards underwriting catastrophe risk and retentions in the improving rate environment are once again bringing discipline into focus, a new report from S&P Global Ratings said, which is a timely thought given the results season may see some with outsized, or larger than anticipated market share of recent catastrophe loss events.
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As much as $1.5 trillion of pension fund and private capital could be unlocked to cover climate related risks and perils according to broking group Howden, which is calling on the risk transfer industry to “change insurance for (social) good.”
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Elementum Advisors, LLC, the insurance-linked securities (ILS) fund management and collateralised reinsurance underwriter, has announced the hiring of former Hudson Structured Capital Management (HSCM) employee Jacqueline Muschett to the role of Managing Director, Head of Actuarial & Valuations.
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Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has announced the launch of Marketplace 2.0, a new iteration of its software that has been redesigned with risk transfer users in mind.
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Early indications suggest that retrocession prices will increase significantly at the January 2022 renewal season, as rates need to get to levels that are commensurate with the risks assumed, according to Frank Reichelt, Head Northern, Central & Eastern Europe, Swiss Re.
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The CATCo Reinsurance Opportunities Fund Ltd., the listed, retrocession focused insurance-linked securities (ILS) fund strategy managed by Markel CATCo Investment Management, has again seen its net asset value (NAV) rise after another reduction in catastrophe loss reserves, this time from the 2018 California wildfires.
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Pension Insurance Corporation plc (PIC) announced just now that it intends to try and put together an investor group to challenge retrocessional reinsurance investment manager Markel CATCo’s proposed buyout scheme, saying that it believes it will “drastically undervalue the interests of investors.”
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Isosceles Insurance Ltd., the private insurance-linked securities (ILS) and catastrophe bond issuance platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, has completed another transaction, with a $21.5 million Isosceles Insurance Ltd. (Series 2021-H) issued.
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