Retrocession

Tokio Marine has told cedants that it will discontinue its aviation retro book as the effects of the mammoth Boeing loss continue to ripple through the market, this publication can reveal.

Sang Hun Park previously spent nine years at Allianz before joining Munich Re as a senior origination manager in August 2021.

The carrier has increased its retro capacity by 56% to EUR1.34bn.

More retrocession capacity is likely to be deployed during 2023 as pricing holds up across the primary, reinsurance and retro markets, according to Conduit Re.

The intermediary recorded “one of the hardest reinsurance markets in living memory” as primary rate increases slowed.

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.