International Group reinsurance 2017/18 placement termination of “fall-back” cover

25 January 2017 No.866
Members are referred to our previous circular No.16-001 dated 15th April 2016 and No.16-017 dated 15th December 2016.

Placement of the International Group General Excess of Loss (GXL) reinsurance and Collective Overspill contracts and the Hydra reinsurance programme for 2017/18 have been completed.  Due to the continuing application of US primary sanctions to the current participating US person/domiciled reinsurers, their lines on the contracts will not be renewed for 2017/18 and have been substituted with alternative capacity.  As a result, the risk of a shortfall in US person/domiciled reinsurer contributions due to the current US primary sanctions has been removed, and there will be no need to renew the “fall-back” reinsurance programme beyond 20th February 2017.