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).
When it came to analysing hurricane Ian’s approach and potential landfall impacts, the uncertainty in modelled outputs on the storm can be helpful, but really the details and parameters of this major hurricane matter most, Aeolus Capital Management’s Pete Dailey explained yesterday.
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During a panel discussion at the ILS Bermuda Convergence 2022 event yesterday, Michael Millette told the audience that while the quantum of loss matters after hurricane Ian, with such a range of estimates, the risk is that cedents will all seek to trap capital as if the industry impact is going to be $70 billion […]
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There are likely to be some retrocession market wildcards in the wake of hurricane Ian at the next major set of reinsurance renewals on January 1st 2023, according to Moody’s Investors Service.
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Universal Insurance Holdings, the Florida headquartered primary insurance carrier, has pre-announced an expectation that it will suffer around $1 billion of gross losses after hurricane Ian, with the impact to fall well within its reinsurance tower that provides coverage to just over $3 billion.
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Hurricane Ian is expected to be the largest single insurance industry loss event ever witnessed, with the final bill estimated to be above $75 billion once LAE is factored in, according to analysis from Stonybrook Capital.
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Tremor Technologies, the insurtech operator of a programmatic insurance and reinsurance risk transfer marketplace, has announced a new Reinsurer Product Council, a group of eight global reinsurance companies and ILS funds who will help to set the future product development roadmap.
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Having listened to comments from Hannover Re at its investor day in London this week, analysts from JP Morgan said the reinsurance firm expects to have a relative advantage over some peers when it comes to securing retrocession at renewals, while Goldman Sachs analysts highlighted the reinsurers ability to tap alternative capital for retro.
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Our Artemis London 2022 conference a month ago was themed as a celebration of the catastrophe bond and our opening session of the day featured a fantastic keynote speech about the cat bond market and a lightning run through 25 landmark cat bonds from the first 25 years of the sector.
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Chard Re, the reinsurance-linked investment manager launched by well-known former Markel CATCo executives Rick Montgomerie and Charlie Vaughan, has hired a new Senior Portfolio Analyst in William (Bill) Orendorf, who is based in Bermuda.
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Insurance-linked securities (ILS) market sources had been forecasting a busy pipeline of catastrophe bond deals for the remainder of 2022 and into early 2023, but at the same time capital raising was not happening as quickly as some would like to have seen, leading to nerves about timing the market to source sufficient capacity and […]
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