International specialist reinsurer Compre has entered into a new in-the-money adverse development insurance (ADC) deal with a European reinsurer.
The agreement covers a diversified portfolio of liabilities across Europe, with net reserves of approximately £250 million.
The portfolio includes automotive, engineering and liability businesses and covers hypothetical reinsurance underwriting years from 2018 to 2024.
This customized ADC structure is designed to provide capital and earnings protection to the cedant while aligning the interests of both parties throughout the life of the portfolio.
In addition, the deal includes a renewable mechanism to provide optional coverage for future coverage years.
Rachel Bardon, chief underwriting officer at Compre, commented: “This transaction demonstrates our ability to provide reinsurers with tailored retrospective capital solutions to protect against adverse developments while maintaining operational control. We are pleased to support our clients with a structure that aligns interests and provides flexibility for the future.”
This is the second legacy deal Compre has announced this month. You can view a list of many other legacy re/insurance transactions on our dedicated page.
The post Compre strikes £250m ADC deal with European reinsurance company appeared first on ReinsuranceNe.ws.
