Strong returns in the reinsurance sector are attracting capital and leading to favorable pricing outcomes for buyers — but underwriting discipline continues, according to renewal reports from three reinsurance brokers.
Despite heavy natural catastrophe losses in the first quarter, reinsurance capacity has exceeded demand.
“[T]raditional reinsurers targeted growth and deployed more capacity at the mid-year renewals, which is accelerating the trend toward buyer-friendly conditions and leading to greater flexibility in terms and conditions as well as options to purchase expanded coverage,” said Aon in its report titled “Reinsurance Market Dynamics – Midyear 2025 Renewal.”
Read more: California Wildfires Had Little Impact on Reinsurers’ Risk Appetite During April Renewals
Reinsurers’ balance sheets continue to be strong, which is driving an appetite for growth — despite insured losses through the first half that are nearing $70 billion, said Guy Carpenter in its report titled “Strong returns in reinsurance sector attracts capital, leading to favorable client outcomes.”
For the first quarter alone, global insured losses from natural catastrophes were estimated at around $60 billion – the second…