Retro: Its Only Cat Business After All

Given the kinds of profits that can be made from retrocession business, it is extraordinary that there is a shortage of capacitya situation that has prevailed for at least a decade.

Throughout that period, it has been possible for a well-written retrocession portfolio to produce a higher risk adjusted return on capital than writing the same exposures on a "first-tier" basis, irrespective of original rate levels.

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