Retrocession

Berkshire Hathaway’s involvement with reinsurer Swiss Re increased yesterday after the pair announced a major retrocessional deal to hive off part of the latter’s underperforming life operations.

Specialty reinsurance group, Flagstone Reinsurance Holdings has delved into the capital markets to structure a retrocessional coverage deal.

The underwriter revealed that it Flagstone Réassurance Suisse SA, operation has purchased three years of fully collateralised retrocessional coverage from Montana Re Ltd (“Montana Re”), a special purpose reinsurer established in the Cayman Islands.

Montana Re was formed as a program structure enabling further issuance of additional series of notes in the future.

Hannover Re has underwritten the first ever capital markets transaction to cover facultative risks as part of its extended Insurance-Linked Securities (ILS) activities.

The Bermuda market and the London Stock Exchange have seen the simultaneous launch of two new ground-breaking fully collateralised funds aimed at providing broad retrocessional cover for “super cats”.

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