NextBlock @NextBlockRWA

12 months. That is how long a reinsurance contract must stay in force to earn full Solvency II capital credit (Art. 209). Six months left on a treaty over a longer book: roughly half the relief. With one annual quota share, capital relief decays all year and resets at renewal.

$210bn annual infrastructure need in Southeast Asia. MAS says ILS can fund it. The structure works at scale. Programs below $50M stay locked out: cat bond minimums start at $100M regardless of regional demand.

Artemis.bm @artemisbm

a day ago

ILS complementary for transferring, funding risks of large infrastructure projects: Singapore’s MAS artemis.bm/news/ils-compl…

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52% of insurers name capital management as a key reason to buy facultative reinsurance, up from 44% in 2024 (Willis, 380 buyers). Fac is placed risk by risk. The friction is paid per placement, so capital relief bought that way costs the smallest books the most.

Intelligent Insurer @intelligentins

4 days ago

[ANALYSIS] 60% of P&C insurers plan to increase facultative reinsurance purchases to support global expansion and deploy surplus capital, according to WTW. Access the full regional rate and capacity breakdown: intelligentinsurer.com/facultative-re…

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Capital architecture is where the cost sits. The structuring bill for a segregated cell, a collateral trust and a rating conversation is broadly flat across deal sizes, so the creative work concentrates on books large enough to absorb it. The small end keeps buying plain capacity because that is what it can afford to buy.

@AMBestCo Discipline reads clearly where a cedent can take a programme to several markets and compare terms. Below the size that supports a tender there is usually one incumbent quote, so discipline and a lack of alternatives produce the same renewal slip.

Net underwriting income near three times last year usually means retentions went up alongside rates. That risk has to be held somewhere, and it is held with capital. For a carrier with under $50m of limit to place, the route to relief is still one renewal date and one counterparty willing to quote it.

Diversification is the easy half of the case. The harder half is what an allocator has to accept to get it a manager in between, a valuation that arrives quarterly, and capital committed until somebody reconciles the year. Those are operational terms rather than risk terms, and they are what keeps most mandates smaller than the appetite sitting behind them.

$1.58bn of insurance risk, 5.1% of assets, against a 5% target and a 2.5% to 7% band. That is City of Zurich Pension's ILS allocation, reported in April. An allocator holds it as a sleeve with a band. A treaty has no band: fixed for the term, valued when the cedent reports.

$100bn of health premium ceded to non-affiliated reinsurers in 2025, 47% of everything ceded in the line. Almost all of it placed treaty by treaty. The capital markets side of reinsurance was built around property catastrophe, and a flow this size still sits outside it.

AM Best @AMBestCo

5 days ago

Non-affiliated #health premiums ceded reached nearly $100bn in 2025, accounting for 47% of total health premiums ceded. View: bit.ly/4gWu9Nf #reinsurance #insurance #healthinsurance #healthinsurers #reinsurers #AMBestGlobalReinsurance #AMBestTV #AMBestMarketSegmentReport

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Lower three-digit millions, deployed into a single property sidecar at 1/1. That is roughly the size at which third-party capital gets a vehicle of its own. A mid-market carrier's entire ceded programme is often smaller than that one ticket.

Bermuda:Re+ILS @BermudaRe

6 days ago

[ANALYSIS] Hannover Re deployed its Bermuda property sidecar in the lower three-digit millions at 1/1, board member Silke Sehm confirmed. Read more: ow.ly/G6b450ZOjNs #Reinsurance #ILS

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Hong Kong's five-year plan proposes a protected cell regime to cut the cost of issuing insurance-linked securities. The cost of a cession is mostly fixed per deal: legal, actuarial, collateral, admin. The same bill lands on a $200m programme and on a $15m one.

$1.8bn of parametric limit, bought by 39 members who would each be far too small to place it alone. The pool is the access mechanism here, not the cover itself. Most mid-market cedents have no pool to join. They negotiate one programme, once a year, on their own.

Artemis.bm @artemisbm

7 days ago

CCRIF lifts parametric risk pool coverage another 14.5% to $1.8bn for current policy year artemis.bm/news/ccrif-lif…

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A US insurer files an abbreviated ceded schedule 45 days after each quarter. The full ceded detail, counterparty by counterparty, with collateral and aging, is filed once a year by 1 March. A cession placed in January waits 14 months to become a filed number.

A 2% cut to the risk transfer budget bought $303m more treaty limit. That is what a softening market looks like when the buyer is large enough to redesign the programme. Below about $50m of limit it arrives differently: a slightly better quote from the same reinsurer, on the same structure. The limit does not move, because nobody redesigns a programme that size.

Intelligent Insurer @intelligentins

2 weeks ago

[ANALYSIS] CEA trims 2026 risk transfer budget by 2% to sub-$540M as softening reinsurance rates offset a $303M expansion in treaty limits. The move comes as the authority shifts away from revenue bonds and evaluates long-term capital framework options. Access the complete

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$23bn of reinsurance sidecar capital was outstanding at the end of June, on Aon Securities' count, up roughly half since the end of 2024. A sidecar lets outside investors fund a share of an insurer's own book. S&P said at the Rendez-Vous that the growth now comes from casualty and whole-account vehicles, five to ten year money rather than one to three. Investors will underwrite a sponsor's entire account for a decade. That has not travelled down to the carrier with $30m of limit, which has the same problem and no vehicle that bends to it.

$2.5bn. That is CalPERS' ILS and cat bond valuation at mid-2026, up from $1.9bn six months earlier. Allocators can buy insurance risk when it arrives as a listed instrument. The mid-market quota share does not, and a $15m cedent has no path to that capital.

Artemis.bm @artemisbm

a week ago

CalPERS ramps up cat bond and ILS investments to near $2.5bn valuation at mid-year 2026 artemis.bm/news/calpers-r…

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KBW now has most executives expecting property cat down 10% or more at 1/1, and warns the actual renewal usually lands softer than the Monte Carlo talk. Softening travels through competition at the renewal table. A cedent who can reach two markets sees the average. A cedent who can reach twelve sees the margin.

Artemis.bm @artemisbm

2 weeks ago

Casualty ILS inflows an incremental negative. Cat may soften more than RVS suggests: KBW artemis.bm/news/casualty-…

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32.5% to 35%. That was IAG's group quota share move at the 1 January 2026 renewal, and the renewal was the only window to make it. A quota share is one of the largest capital levers a carrier has. It reprices once a year, whatever the book does in the other eleven months. A cession that settles continuously moves when the exposure moves. That is what we are building at NextBlock.

The ILS market grew more than 80% in a decade, to about $123bn, with a global workforce still under 2,000. That ratio is standardisation. A cat bond is an instrument, and a small team can run many of them. A mid-market quota share is negotiated one deal at a time.

Artemis.bm @artemisbm

2 weeks ago

Over the past decade, the insurance-linked securities (ILS) market has expanded significantly, while keeping its global talent footprint remarkably lean. According to 20Twenty Search Advisor Jason Sykes, this streamlined operational structure shields ILS professionals from the

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78% of catastrophe bond limit issued in 2026 carries an indemnity trigger, the highest share on record. It was 67.5% in 2022. Indemnity settles slowly: the loss has to be verified first. Sponsors accept it, because a parametric payout can miss the actual claim. @artemisbm