Jarad Madea, CEO of Howden Capital Markets & Advisory (HCMA), and Wade Gulbransen, CEO of Howden Re North America, discussed the impact of alternative capital on the reinsurance sector in an interview with The Insurer TV during the Rendez-Vous de Septembre event.
The conversation focused on how increased interest from alternative capital sources has influenced market stability and competition. Jarad Madea addressed the implications of a recent Moody’s Ratings forecast that catastrophe bond issuance could exceed $20 billion in 2025. He stated, “I think that creates a good opportunity in the reinsurance market to stabilize pricing a bit more in certain ways. I also think it brings healthy competition into the market in terms of the tension around primary reinsurance and their pricing.”
Wade Gulbransen commented on Howden Re’s approach to capital sourcing within collateralised markets: “We talk internally all the time and share with our clients that we’re agnostic to the form of capital. We’re trying to bring risk to the capital providers and match those two parties together to bring the most economical form of capital to the insurance company and, ultimately, the insured who policies support.”
The interview also covered changes in client risk retention over the past year, trends in public and M&A markets across North America, as well as details about Howden Re and HCMA’s U.S. structures.
The full interview is available at The Insurer TV.