RenaissanceRe

The reinsurer will write a line on any risk that Vermeer writes to ensure alignment of interest with PGGM.

The ILS investor says 7 percent annual returns have made the asset class an attractive opportunity for the fund.

Chubb and Travelers also face losses of around $400mn each should total insured losses hit $10bn, the analyst said.

Third-quarter catastrophe losses resulted in a 1.8 percent to 5.2 percent hit to the shareholder equity of global reinsurers, with major catastrophe writers all impacted.

Tokio Millennium Re’s agreed sale to RenaissanceRe will open up an opportunity for competitors to enter the fronting market.

The firm warned that it expected continuing industry adverse development into 2019.

The world of so-called collateralised reinsurance has always been a bit of a misnomer as significant volume is transacted behind several rated fronts.

The insurer’s Irma losses have risen by a further 25 percent to $754mn.

The reinsurer said the fronting operations were “a very different business” than its own ventures division.

RenaissanceRe also revealed that it expects its Hurricane Michael losses to be as much as $100mn.

A Monte Carlo roundtable debate was hosted by this publication.

The deal also brings RenRe one of the largest fronting providers.