For 2022, the size of Hannover Re’s aggregate excess-of-loss (XoL) worldwide retrocession reinsurance layer has decreased by almost 50% to approximately €113 million, as the German reinsurer navigated more challenging retro market conditions at the January 1st renewals.
As forecast towards the end of last year, aggregate retro capacity was harder to source and more expensive at the 1/1 reinsurance renewals amid reduced appetite for frequency exposure driven by loss impacts.
It’s been widely reported that the retro renewals at Jan 1st, 2022, were some of the most challenging and led to some carriers adjusting their retro books for the year ahead, and this includes large, global reinsurers such as Hannover Re.
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