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Germany and ILS: A difficult liaison?


Germany and ILS: A difficult liaison?

In this month’s ILS blog, Henning Ludolphs, managing director of retrocessions and capital markets at Hannover Re, examines Germany’s ILS participation.

Germany has three re/insurers actively involved in non-life ILS activities: Allianz, Hannover Re and Munich Re. Apart from laying off own risks – Hannover Re issued the first catastrophe bond ever in 1994 – all three use the ILS market to offer services or to invest in ILS.

Allianz (though Allianz Risk Transfer) and Hannover Re facilitate the transfer of reinsurance risk to capital markets by way of collateralised fronting. Munich Re and Hannover Re offer structuring and transformation services for catastrophe bonds.

However, there doesn’t seem to be many more German re/insurers taking part in ILS activities. Risks aren’t being transferred to capital markets in a catastrophe bond form and there aren’t many transactions going to ILS investors via collateralised reinsurance.

Hannover Re, Henning Ludolphs, ILS

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