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).
TransRe has returned to the catastrophe bond market with what will be its third issuance, launching a Bowline Re Ltd. (Series 2022-1) deal through which it is seeking at least $175 million of US and Japanese retrocessional catastrophe reinsurance protection.
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The Bermuda Monetary Authority (BMA) has issued a call for insurance-linked securities (ILS) vehicles domiciled on the island to adhere to international sanctions related to the ongoing conflict between Russia and Ukraine and to disclose any relevant information or impact related to it as it continues.
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Governor of Florida, Ron DeSantis has revealed his intention to call a special legislative session in May, with one of the primary goals being to debate and enact some property insurance market reforms in an attempt to slow the developing insurance crisis in the state.
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March saw a resurgence in the number of litigated property insurance claims at Florida’s largest P&C insurers, while litigated claims related to the assignment of benefits (AOB) increased at their fastest rate since 2019, according to CaseGlide.
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The second catastrophe bond to be sponsored by relatively new insurance and reinsurance company Vantage Risk Ltd. has seen a significant increase in pricing, with the still $65 million Vista Re Ltd. (Series 2022-1) issuance seeing the mid-point of guidance rising 16% while marketing.
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France-headquartered global reinsurance company SCOR has said it expects the conflict in Ukraine and other natural catastrophe events will cause it to report a loss for the first-quarter of 2022, with a high double-digit million Euro charge expected to hit its results.
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The ultimate insurance and reinsurance industry loss from the ongoing conflict in Ukraine could rise above US $20 billion, according to analysis from PCS, a Verisk company, which has provided some data the ILS market may find helpful in understanding what, if any, exposure its structures may hold.
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Swiss Re’s landmark hybrid bank financing and insurance-linked securities (ILS) backed whole account stop-loss transaction was a “win-win” for the reinsurer and the investors backing the deal, with the ILS component of the arrangement oversubscribed due to its popularity, Philipp Rüede explained to Artemis.
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Swiss Re has completed a landmark hybrid bank financing and insurance-linked securities (ILS) transaction, utilising its Matterhorn Re Ltd. special purpose insurer to issue catastrophe bond notes alongside a loan arrangement with J.P. Morgan, to secure $1.15 billion of all-lines of business stop-loss financing and protection from the capital markets.
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The senior leadership of global reinsurance company Swiss Re is bullish that insurance-linked securities (ILS) investor appetite will recover after a recent lull caused by losses and uncertainty, they explained at the firm’s investor day yesterday.
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