Increasing MLT outward reinsurance from ECAs placed with the private market
According to Berne Union data, MLT outward reinsurance from ECAs has increased by 10% over the past 5 years and, as of 2018 totals over USD 70bn, from a total exposure of around USD 700bn
An increasing amount of ECA exposure is being reinsured by the private insurance market, reflecting both the increasing capacity and appetite of private insurers, and increasingly common public-private cooperation in export credit.
While previously, the majority of ECA's outward reinsurance went to other ECAs, the situation flipped around 3 years ago and now the majority (57% / USD 40bn) is taken by private insurers/reinsurers or multilaterals (the other 43% / USD 30bn being ECA-ECA reinsurance).
Cooperative reinsurance agreements and placement of ECA risks in the private market are key talking points for the 2019 gathering of Berne Union reinsurance specialists in Pula, this week, hosted by HBOR.
A meeting summary will follow in a future newsletter publication.