Retrocession

The deal protects the carrier’s capital in the event of large nat-cat or mortality losses.

The exit highlights increasingly difficult conditions in the retro and reinsurance markets.

The carrier has become the latest in a string of reinsurers unwilling to write retro at 1 January.

The RenRe vehicle, formerly a major retro writer, has been a reduced force this year.

It is understood that Ascot will continue to write worldwide retro business.

Inflation, heightened cat activity and years of poor reinsurance returns are fuelling demands for wholesale change in the European market.

Fidelis and MS Reinsurance are among the ceding companies that have support from Ajit Jain’s unit.

Kevin O’Donnell also said 1.5-point rises in ceding commissions for long-tail line treaties were an “acceptable” increase in acquisition costs, given improved underlying profitability.

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Greater participation of cat bond investors in the retro market has some advantages alongside the risks.

The unwinding of the pandemic, inflation and specialty pricing are set to be some of the areas of focus for the market.

Retro renewals have made major progress in early January, but programme gaps remain at some levels, with reinsurers left carrying more risk net.