RenaissanceRe

The reinsurer said the fronting operations were “a very different business” than its own ventures division.

RenaissanceRe also revealed that it expects its Hurricane Michael losses to be as much as $100mn.

A Monte Carlo roundtable debate was hosted by this publication.

The deal also brings RenRe one of the largest fronting providers.

The $1.5bn deal also entails a reinsurance co-operation agreement between buyer and seller.

The Bay and Gulf counties in Florida are likely to the bear the brunt of Hurricane Michael losses.

According to market sources, the $2.5bn in losses mostly falls with homeowners’ insurance, which accounts for 62 percent of that figure.

The carrier said Typhoon Jebi and Hurricane Florence will account for most of the claims.

But the reinsurer will likely retain its independence, experts say.

Mt Logan Re investors took $133.8mn of losses in Q2 as its parent Everest Re suffered from adverse development on 2017 claims, undoing the benefit of reserve releases booked in the fourth quarter last year.

RenaissanceRe kept its stake in the $1bn reinsurance programme stable at $262.5mn while Swiss Re increased its line by $10mn this year to $185mn.

The Florida-based insurer is also expecting to make reinsurance claims related to the Hawaiian eruptions.