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For Capacity & Capital providers

How does CRetro work?

CRetro is a vehicle for global insurers to buy protection from other (re-)insurers or capital providers on all or part of their underwriting book through ‘secured’ retrocessional risk-transfer.

With properly arranged commitments there is a unique opportunity for any professional regional insurer or investor to engage in global the CAT reinsurance market enjoying all threads and rewards for that business.

As an investor we can offer you a structured robust framework to invest in a dynamic and fresh market. We use an aggregation business model allied to properly structured instruments to give you a unique offering

 

What are the benefits?

By taking part in this type of reinsurance any local company could:

  • Balance the portfolio with substantial inward premium income with an average rate as high as 35%
  • Establish a solid professional track record by becoming a reinsurer for Lloyd’s and wider markets
  • Participate in a range of programs designed around the client and carefully negotiated between all parties.

How do we help make this happen?

We minimise or even making it profitable for collateral posting and service costs with international financial institutions by utilising our buying power and strategic arrangements with partner banks in the region.

Beyond the insurance industry there is an opportunity for third party investors including banks, asset managers, hedge & pension funds and high net-worth individuals to participate in single contract transactions such as Quota Share or CAT XL reinsurance treaties through clearly segregated account arrangements.

Reducing the risk to you

Investors can participate in catastrophic reinsurance underwriting through a vehicle which is not linked to fixed income, credit and equity market movements.

The benefits are:

  • Investments offer attractive returns with low historical volatility relative to traditional and non-traditional asset classes. Have a look to the presentation here.
  • Returns track the insurance cycle rather than stocks or fixed income arrangements and appear to be a purer play than insurance equity, which embeds significant investment risk, especially in emerging economies
  • A clear and transparent contract – usually performed through the purchase of non-voting preferred stock of a specific account, which is governed by a Subscription and Shareholders agreement
  • Segregated accounts with the maximum liability collateralised at inception through a Letter of Credit or Collateral Trust (Escrow) arrangement.