Overview:

Collateralized Retrocessional Reinsurance is a practise of reinsurers to purchase protection from other reinsurers on their whole-account or portions of account (usually CAT NAT peaks) through "secured" retrocessional risk-transfer.

This practice allows reinsurers to manage exposures they may have accumulated in their business or manage the overall size of their business relative to their capital position as market conditions warrant.
Reinsurance obligations can be secured in a number of ways including Letters of Credit or Cash Deposits. Such Letters of Credit are usually issued/confirmed by A rated banks for 100% of ceded liability and tailor made to suit Client's requrements usually being clean, irrevocable, unconditional instruments with evergreen provisions up to 3 years.

On the other hand use of these instruments allows those interesed insurers/reinsurers from various "alternative" regions (i.e. Central & Eastern Europe, MENA) to take part in worldwide or regional CAT retrocessions from the recognized leaders of the reinsurance industry which otherwise they would not be able to do due to the lack of acceptable levels of financial strength ratings.

Our Clients:

• Lloyd's Syndicates
• Insurance or Reinsurance Companies with regional or worldwide
  exposures looking to minimise "counterparty risk" in their retrocessions
  or obtain 'cash covered" retro reinsurance

Our Partners:

• Leading European banks with extended networks throughout various
  regions

Kirill Savrassov
Director
LMX Collateralised Retrocession
ksavrassov@chesterfieldgroup.co.uk
T: +44 (0)20 7481 1683

Mike Lilley
Managing Director Treaty Division
mlilley@chesterfieldgroup.co.uk
T: +44 (0)20 7481 1683

Andrew Bardrick
abardrick@chesterfieldgroup.co.uk
T: +44 (0)20 7481 1683

Chesterfield Group Ltd.
St. Clare House,
30/33 Minories,
London
EC3N 1DD