Paradigm shift

The growth of collateralised reinsurance has been well documented. Cat bond returns have been falling, yet bond placements are over-subscribed despite the fact that the multiple of pricing over expected loss also continues to fall. Faced with this environment, a number of ILS funds now seek alternative returns from private placements of reinsurance contracts where they provide the collateral but need a transformer cell reinsurer to write those risks and access the potential returns.