Compre Group Holdings Limited (Compre), the Bermuda-domiciled international specialty reinsurance group, has reached an agreement on a retrospective structured adverse development cover (ADC) transaction with a Lloyd’s syndicate.
The transaction covers the syndicate’s 2023 and prior Years of Account on a whole-account basis, spanning a multi-line portfolio of property and casualty business and assumed reinsurance, with subject reserves of approximately £200 million.
The cover is designed to provide the syndicate with greater certainty over adverse development while supporting effective balance sheet management and capital optimisation.
It incorporates a variable premium structure, while allowing the syndicate to retain its assets and investment income. This enables the arrangement to adapt to the client’s evolving capital and balance sheet requirements.
No claims administration will transfer as part of the transaction, with the syndicate retaining responsibility for the ongoing management and administration of the underlying claims.
The transaction also includes a renewable element, creating the potential for the arrangement to provide an ongoing capital management solution rather than a one-off transaction.
The next renewal is expected to be considered in the first quarter of 2027, with the structure designed to be reviewed annually thereafter.
Compre said the transaction demonstrates its ability to deliver bespoke capital and liability solutions across the full risk lifecycle, combining specialist underwriting, actuarial and claims expertise with a disciplined approach to capital management.
Rachel Bardon, Chief Underwriting Officer at Compre, said, “This transaction is a strong example of how we are continuing to evolve our retrospective proposition to meet clients’ changing capital and balance sheet needs. By combining our expertise in structured reinsurance with a renewable approach, we can provide a solution that addresses earnings volatility and supports capital optimisation while allowing the client to retain its assets and claims administration. The recurring nature of the structure also reflects the value of building longer-term partnerships with clients, rather than viewing retrospective reinsurance as a one-off transaction.”
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