Retrocession

Eden Re provided $300mn of retro support for Munich Re in 2018 across a couple of debt issuances.

The Latin American investment bank has backed the ILS start-up to launch a new low volatility fund in 2019.

The vehicle is a first for an Asia-based cedant.

This publication retraces the series of loss predictions made by the manager for its listed Reinsurance Opportunities Fund over the past year.

The retro market is likely to tighten at this year’s renewals as investors pause and reconsider their strategies following another year of substantial losses.

January renewals were creaking into order in December after the wildfires locked up the process.

The firm’s 2017 portfolio loss has risen 15.7 percent to 57.1 percent.

Trapped capital will add to losses from Michael, Jebi and the wildfires.

An annualised 5 percent loss since inception incorporates the retro fund's share price return.

On average carriers expect to cede around half their gross losses across a range of potential peak perils.

The firm paid out just over a third of redemption requests in November, indicating investors sought to redeem 15 percent of its share base, sources said.

The ILS market is often presented as the player in the (re)insurance industry with the deepest pockets, with access to trillions of pension fund wealth in worldwide bank vaults.