News 21 Dec, 2021 Group Reinsurance Rates 2022/2023 The arrangements for the renewal of the International Group General Excess of Loss (GXL) reinsurance contract and the Hydra reinsurance programme for 2022/23 have now been finalised.  These include the Collective Overspill Cover; Excess War Risks P&I cover and MLC cover. Download PDF Given the hardening market conditions and the deterioration in the Group’s claims record (which, together with securing uniquely high levels of cover for malicious cyber and pandemic risks, has been the main driver in the increase in rates), the Group has agreed to a significant increase in premiums to the markets to renew its 2022 reinsurance programme. In order to achieve this, there have been some adjustments to the main GXL placement. The main GXL placement (layers 1-3, US$2 billion excess of US$100m) has now been split into four layers, with the Collective Overspill renewed excess of the GXL, and the three private placements also maintained in place. As such, the entire commercial market placement can be summarised as follows: Private Placements: 30% of the Layer US$650m excess of US$100m has been secured on expiring coverage terms. This percentage is covered by three private market placements which are renewed independently of the main GXL programme . Main General Excess of Loss: With regard to the 70% balance of the expiring Layer 1 and the expiring Layers 2 and 3 of the previous structure, a change was negotiated with the reinsurance markets, as follows: The expiring Layer 1 (US$650m excess of US$100m) has been split into a new Layer 1 (US$450m excess of US$100m) and a new Layer 2 (US$200m excess of US$550m). The US$100m AAD (retained by the Group’s captive Hydra), within the 70% market share of Layer 1 of the programme remains in place. Excess of the new Layer 2, the layers remain as US$750m excess of US$750m (Layer 3), and US$ 600m excess of US$ 1.5bn (Layer 4). Both these Layers are placed 100% in the market. These