Retro is ‘largely loss-free’ so far right now
The retrocession market is largely loss-free at the moment, the beneficiaries of increases in retentions introduced in the last renewal. As such, that part of the market may also look more settled this year.
This is the view of Matthew Foreman, head of non-marine retrocession and property specialty at Lockton Re, commenting in a joint interview with Freya Foxall, non-marine retrocession and property specialty, also at Lockton Re.
“While there have been a fair amount of nat cat losses this year, and a lot of those are sitting with insurance companies, only a modest amount is with reinsurers. Equally, I would argue that the retro market is probably largely loss-free right now.”
He said that most retro writers, both traditional and ILS, have had a pretty good year so far. But he added a major caveat: the ongoing hurricane season. “We’re not anywhere near half-time and there’s plenty of active storms in the water at the moment.”
