International specialty reinsurance group Compre has entered into a new in-the-money adverse development cover (ADC) transaction with a European reinsurer.
The agreement covers a diversified, Europe-wide liability portfolio with net reserves of approximately £250 million.
The portfolio includes motor, engineering, and liability business, spanning assumed reinsurance underwriting years from 2018 to 2024.
This bespoke ADC structure has been designed to deliver capital and earnings protection for the cedent while aligning the interests of both parties over the life of the portfolio.
Further, the transaction includes a renewable mechanism that provides optional coverage for future underwriting years.
Rachel Bardon, Chief Underwriting Officer, Compre, commented: “This transaction demonstrates our ability to deliver tailored retrospective capital solutions to reinsurers seeking protection against adverse development while maintaining operational control. We are pleased to support our client with a structure that aligns interests and provides flexibility for the future.”
This is the second legacy transaction announced by Compre this month. You can see a list of many other legacy re/insurance transactions on our dedicated page.
