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The supply-demand balance for global non-marine retrocession continued to tilt in buyers’ favour, as cedants were presented with opportunities to expand their retro purchases at the mid-year reinsurance renewals and some market participants took a commercial view on collateral trapping, according to Gallagher Re.

As per the reinsurance broker’s 1st View report, occurrence retrocession excess of loss limits were broadly up at the renewals, alongside a notable increase in the number of aggregate and frequency covers being explored and purchased, with buyers aiming to manage frequency risk across the second half of 2025.

“Market supply remained adequate, as reinsurers’ growth ambitions combined with increasing confidence in California wildfire reserves to drive increased appetite from incumbent markets,” Gallagher Re added.

The broker noted that trapped collateral stemming from the California wildfires had limited influence on mid-year renewal outcomes.

Gallagher Re said that several buyers chose to take a commercial approach to the rolling of collateral.

This commercial approach to collateral trapping can benefit both the buyer of retrocessional protection and the ILS fund or capital manager deploying the capacity.

It can enable collateral to be re-used more efficiently, providing continuity for buyers, while allowing the source of trapped collateral, often insurance-linked securities (ILS) fund managers, to better manage their fund capacity through the renewal season.

Given the long-standing relationships buyers often have with retrocessionaires, it makes sense to take a commercial view on trapping. Being pragmatic, about the need to trap versus rolling collateral, can result in more benefits and stronger relationships over the long-run.

Gallagher Re also said that occurrence excess of loss purchases continued to take priority over indexed products at retro renewals, but noted that the industry loss warranty (ILW) market became increasingly active in the lead-up to the Atlantic hurricane season.

Furthermore, risk loss-free reinsurance rates for global non-marine retrocession were renewed -5% to -10% at the mid-year renewals, while catastrophe loss-free rates decreased -5% to -15%.

As well as this, Gallagher Re also highlighted that a significant softening in the catastrophe bond market, coupled with increased supply, further pushed down pricing for tail-exposed excess of loss covers, including some softening in minimum rates-on-line.

Finally, the broker also reported an uptick in demand for secondary peril covers on an indexed basis, an area where greater appetite continues to be shown.

Read all of our reinsurance renewal news coverage.

Some retro buyers more “commercial” on rolling trapped collateral at renewals: Gallagher Re was published by: www.Artemis.bm
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Reinsurance broker Guy Carpenter has updated its property catastrophe reinsurance rate on line indices today and the latest data shows that after the April and mid-year renewals, property cat reinsurance rates have fallen 8.1% globally, 6.7% in the United States and a more significant 15.9% in the Asia Pacific region.

Recall that, these indices for property catastrophe reinsurance rates and pricing largely fell at the start of the year.

The January 2025 declines were the first since 2017 for all of the indices, except for Asia Pacific, where after a rebasing and re-evaluation of the data for the rate-on-line (RoL) Index for that region, Guy Carpenter’s data showed a decline occurred there in 2024 as well.

Now, the declines have continued and accelerated in all cases after Guy Carpenter has incorporated the market data from the mid-year June and July reinsurance renewals into its indices.

First, the Guy Carpenter Global Property Catastrophe Rate on Line Index, which is its proprietary index of global property catastrophe reinsurance Rate-on-Line movements, on brokered excess of loss placements, that has been maintained by the broker since 1990.

The Global Property Catastrophe Rate on Line Index fell by 6.6% at the January 1 2025 renewals, which was its first decline since 2017.

Now, after including market data from the mid-year renewals, this Global index is now down 8.1% for 2025 to-date.

Despite these declines, this Global index of property catastrophe reinsurance rates and pricing is still higher than all years running from 2006 to 2023.

Notably, this Index of global property catastrophe reinsurance pricing is still 57% higher than its last low in 2017, reflecting still strong and attractive pricing in reinsurance.

Alongside the firm terms, conditions and attachments, this is why catastrophe reinsurance remains so attractive at this time, despite now two years of softening from its highs.

You can analyse the Guy Carpenter Global Property Rate on Line Index using our interactive chart:

Next, the Guy Carpenter U.S. Property Catastrophe Rate on Line Index, which measures US property catastrophe reinsurance Rate-on-Line movements, on brokered excess of loss placements, and tracks the data back to 1990 as well.

This index for United States property catastrophe reinsurance rates and pricing had fallen by 6.2% at 1/1 2025, which was the first decline for this index since 2017 as well.

Now, following the 6/1 and 7/1 reinsurance renewals at the mid-year, the Guy Carpenter U.S. Property Catastrophe Rate on Line Index is down a little further at a 6.7% decline for 2025 so far.

For this US index of property catastrophe reinsurance rates, the Index is still up by a significant 93% since its low in the soft market year of 2017.

You can analyse the Guy Carpenter U.S. Property Rate on Line Index using our interactive chart:

Turning to the Asia Pacific region, Guy Carpenter’s APAC property catastrophe reinsurance rate-on-line index tracks the same property catastrophe reinsurance Rate-on-Line movements, on brokered excess of loss placements, for this part of the world.

In Asia Pacific (APAC), property catastrophe reinsurance rates fell by 7.2% at January 1st 2025. As we explained, the APAC index had been rebased by Guy Carpenter to show it had declined for full-year 2024 as well.

Including the April reinsurance renewal data, as of July this APAC property cat ROL index is now down by 15.9% in 2025.

Since its most recent low, this APAC index of property catastrophe reinsurance rates on line is now only up by 19.5% since 2018.

You can analyse the Guy Carpenter Regional Property Rate on Line Index using our interactive chart:

Guy Carpenter explains on its Indices, “Rate on line (ROL) is the cost of reinsurance per dollar of limit. The calculation of ROL is reinsurance premium as a percentage of limit. Each Guy Carpenter ROL index is a measure of the change in dollars paid for coverage year on year on a consistent program base. Each index reflects the pricing impact of a growing (or shrinking) exposure base, changes in buying habits and the way risk is measured, as well as changes in market conditions. Unlike risk-adjusted measurements, each index is not dependent on the model or method used to measure the amount of perceived risk in a program, which can vary widely.”

Overall, property catastrophe reinsurance rates-on-line are still sitting at attractive levels, especially for the United States and other regions, while APAC has clearly softened fastest but remains well above its last trough.

Combined with the changes to attachments and terms that have proven to be sticky, this can still make for a very profitable environment to enter the reinsurance market for capital providers and investors.

Read all of our reinsurance renewals coverage here.

Property cat rates down 8.1% globally, 6.7% in US, 15.9% in APAC in 2025: Guy Carpenter was published by: www.Artemis.bm
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Despite the fact property catastrophe reinsurance rates have moderated somewhat, analysts at Jefferies said the market remains attractive and they do not classify it as soft given pricing remains above 2022 levels at this time.

Commenting on the property catastrophe reinsurance market after the mid-year 2025 renewals, the Jefferies equity analyst team highlight the influx of capital that helped to moderate pricing and make renewal outcomes more favourable for buyers.

“Increased capital deployed outpaced rising demand (estimated at ~10% increase in limit purchased) as increased capacity from newly formed reinsurers/syndicates/ILS funds more than offset incremental purchasing by cedants,” the analysts explained.

They highlight the very strong catastrophe bond issuance seen to-date, which as we explained recently has led to a new annual record being set by Artemis’ data.

Larger transactions and new sponsor entrants have helped to drive the catastrophe bond market to its record highs, but the Jefferies analyst team also think pricing remains attractive here despite some softening being seen.

“Despite larger transactions and new entrants in the market, CAT bond spreads, or pricing, have come in slightly since 1Q25 but are stable with 4Q24,” they explained.

While rates-on-line have fallen across many catastrophe reinsurance renewals this year, the analysts continue to see value in the sector for underwriters.

“Despite moderating rates, we believe property CAT returns remain attractive and do not view the market as soft given pricing is above 2022 levels,” the Jefferies team wrote.

Adding that, “Further, returns in Florida remain favorable despite pricing pressures relatively recent given tort reform.”

Jefferies analysis aligns with our recent article on a Peel Hunt report, which concluded that the inflection point into a full soft reinsurance market remains two to three years away.

Read all of our reinsurance renewal news coverage.

Property cat reinsurance rates remain attractive, market not yet soft: Jefferies was published by: www.Artemis.bm
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News continues to emerge that reflects the increased availability of aggregate reinsurance protection, as an analyst report shows Italian insurance and financial services group Unipol secured a planned €300 million aggregate reinsurance treaty to better protect it against smaller catastrophes and weather losses.

Aggregate catastrophe protection, to provide reinsurance for smaller catastrophe and weather losses on an accumulating loss basis, has been a more challenging product to source for a few years.

As the reinsurance market hardened after 2022, appetite to deploy limit to cover aggregate losses diminished, while the cost of aggregate reinsurance and retrocession covers also rose.

But, in 2025, these covers have become more available and affordable as well, with the catastrophe bond market one leading source of annual aggregate protection once again.

While at the same time, European protection buyers have also found reinsurers and ILS capital more accommodating for buying aggregate reinsurance from.

We reported back in May that during an earnings call General Manager of Insurance at Unipol, Enrico San Pietro, said that the company was aiming to buy a new aggregate reinsurance arrangement this year.

Now, in an analyst report from Berenberg, details of that purchase have been revealed.

The Berenberg analysts, after holding a speed-dating event with numerous re/insurers present, explained that Unipol executives said that the aggregate cat reinsurance cover will provide €300 million of limit.

The agreement was signed in May and attaches once aggregate losses surpass a €350 million retention, it is reported.

It’s also said that the aggregate cover only protect Unipol for weather and catastrophe events that cost it less than €100 million, while its main catastrophe reinsurance treaty will continue to provide the protection for larger events than that.

The Berenberg analysts report that Unipol’s new aggregate reinsurance treaty covers weather and smaller cat losses to both its motor and non-motor books of business.

While this is further evidence of the appetite to deploy capacity to aggregate covers recovering, other companies at the Berenberg event highlighted that capital remains disciplined, with high deductibles enforced and only relatively low limits available.

Aggregate reinsurance and retrocession has always been considered more of an earnings than capital cover, protecting the ability of re/insurers to hit their profit targets even when frequency loss events are prevalent throughout the financial year.

As a result aggregate protection remains a very attractive buy and we’ve seen plenty of aggregate cat bonds issued this year, especially in industry-loss trigger retrocessional form for large reinsurance companies.

We’ve also reported on aggregate reinsurance purchases that have come to light from global insurer Zurich and Bermuda-based reinsurance firm Conduit Re.

In the outstanding catastrophe bond market, just under 40% of limits currently at-risk are deployed to provide aggregate reinsurance protection.

But in the last few months, the prevalence of aggregate deals has increased a little, further signalling recovering appetites to deploy capacity and capital to these opportunities, which is being supported by attachments and prices remaining relatively stable and attractive still.

Of course, the greater availability of aggregate reinsurance has been a trend we’ve followed for some months, with notably more reinsurance capital available to support well-structured aggregate deals towards the end of 2024, which led reinsurance buyers to become more hopeful as we moved towards 2025.

Unipol reportedly secured €300m aggregate reinsurance cover was published by: www.Artemis.bm
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The global reinsurance sector has entered the second half of 2025 with strong momentum, driven by a potent mix of capital inflows, favourable underwriting conditions, and robust investor returns, according to reinsurance broker Guy Carpenter.

Despite ongoing global economic volatility and insured losses nearing $70 billion through the first half of the year, the renewal trends seen at January 1 have largely continued, according to Marsh McLennan’s global risk and reinsurance specialist.

Although the first quarter of 2025 saw elevated loss activity, driven largely by the $40 billion in insured losses from the Los Angeles wildfires, insured loss activity moderated in the second quarter. As a result, aggregate losses are now flat compared to the inflation-adjusted five-year average.

Despite these events, reinsurers absorbed the impact without meaningful capital impairment. The sector ended 2024 with a record $607 billion in capital, and growth of 5% to 7% is forecast by year-end 2025.

In addition, reinsurer returns on equity were reportedly 16% in 2024 and are projected to be 15% in 2025, while reinsurance capital closed 2024 at an all-time high of $607 billion.

Guy Carpenter anticipates seeing a continuation of this trend, with capital growth of 5% to 7% by year-end 2025.

Dean Klisura, President and CEO, Guy Carpenter, commented: “The current trading environment is one of the most favorable for reinsurers in many years, evidenced by the additional capital being attracted to the sector.

“We see this as a tremendous opportunity to re-balance the market dynamics in our clients’ favor. More capacity will continue to moderate pricing, give clients more diversification of reinsurance partners, and provide better solutions to protect earnings.”

“Reinsurers easily absorbed the 5% to 7% increase in client demand for property catastrophe limit. Moreover, reinsurer capacity exceeded demand by more than 20%, driving risk-adjusted rate decreases of 5% to 15% for non-loss impacted programs, and risk-adjusted rate increases of 10% to 20% for loss-impacted programs,” Guy Carpenter explained.

Against this backdrop, the insurance-linked securities (ILS) market, particularly catastrophe bonds, has shown remarkable resilience and scale.

Issuance so far in 2025, across 144A cat bonds and private cat bonds sat at over $17.56 billion for the first half of 2025, which is very close to the Artemis-tracked annual record of $17.7 billion from full-year 2024, as new quarterly issuance records were set in both Q1 and Q2 this year.

Download your copy of the new Q2 2025 Artemis cat bond market report here to read more.

In 2025, GC Securities, Guy Carpenter’s capital markets arm, has led the way with 23 catastrophe bond placements, more than any other broker in the market year-to-date. This level of activity underscores continued investor demand for structured reinsurance risk, particularly as underlying insurance market conditions remain stable and loss activity has normalised.

Shifting focus to casualty, Guy Carpenter reported continued discipline at the Spring 2025 renewals, with two factors helping drive more stable outcomes.

“First, reinsurers and clients evaluated trading relationships across property, casualty, and specialty programs. Reinsurers looked to find balanced support across all programs for a given client.

“Second, carrier underwriting actions have improved casualty economics for reinsurers, particularly proportional programs where insurers share ground-up premium and loss.

“As a result, through mid-year renewals, ceding commissions on proportional placements generally renewed flat to slightly down following 18-24 months of reductions. Excess of loss placements continued to face rate pressure as loss severity drives more volatility for reinsurers – generally rates increased 10-20%, although each renewal was highly customized based on the individual portfolio,” the broker concluded.

Read all of our reinsurance renewal news coverage.

Capital growth and pricing discipline drive stability at mid-year reinsurance renewals: Guy Carpenter was published by: www.Artemis.bm
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A wave of alternative capital, led by a record-setting surge in catastrophe bond issuance, helped reinsurers meet growing demand without pushing prices higher at the July 1 renewals, according to Gallagher Re, as cedants secured improved terms in property and specialty lines.

While traditional reinsurance capital reached a new high of $769 billion at year-end 2024, Gallagher Re’s latest 1st View report highlights the critical role of insurance-linked securities (ILS) and cat bonds in sustaining competitive pressure through mid-2025.

Issuance so far in 2025, across 144A cat bonds and private cat bonds we’ve tracked, sat at over $17.56 billion for the first half of 2025, which is very close to the Artemis-tracked annual record of $17.7 billion from full-year 2024, as new quarterly issuance records were set in both Q1 and Q2 this year.

According to Gallagher Re, this wave of transactions, driven by strong investor demand and sponsor confidence, ultimately helped reinsurers meet increased demand without pushing prices higher.

Commenting on the July 2025 reinsurance renewals, Tom Wakefield, CEO Gallagher Re, said: “Buyers generally experienced a more competitive reinsurance market at the July 1 renewal compared to recent years, with capacity available even where demand increased, and reinsurers looking to grow.

“Clients were largely able to secure risk-adjusted rate reductions for property treaties and were well-placed to hold pricing broadly flat in casualty lines – in part, as underlying pricing increases continue to flow through to reinsurers.

“With these conditions in place, clients had the opportunity to challenge the status quo, and secure improvements to the structure and terms of their property and specialty reinsurance programs.”

Reinsurers entered the July renewals in “good financial shape” Wakefield noted, with strong 2024 results and ROEs well above the cost of capital.

“Q1 results were weaker due to the impact of January’s unprecedented wildfires in Los Angeles, California, but barring further exceptional cat events, reinsurers remain on track for another good year overall,” Wakefield added.

“As noted in Gallagher Re’s Reinsurance Market Report in April, reinsurers are currently on track to deliver healthy ROEs in the mid-teens for 2025, with traditional reinsurance capital set to increase by another 6% (assuming average results for the rest of the year).”

Despite these fundamentals, cedants achieved risk-adjusted rate reductions of 10–15% on average in property catastrophe programs, particularly for loss-free or structurally enhanced portfolios.

“The increase in reinsurance dedicated capital has been driven mainly by retained earnings at the traditional reinsurance groups, rather than new entrants or capital raises.” Wakefield added.

“We are also collaborating with clients to utilize non-traditional capital vehicles, such as sidecars, where interest in accessing insurance risk remains robust.”

While traditional capital hit new highs, it was the alternative capital layer that gave buyers greater flexibility, helping maintain competitive tension and push back against previously hardened terms.

The cat bond market remained highly efficient, with a Q2 weighted average upsize at 27% indicating investor oversubscription, and a steady market multiple of 3.09, even amid increased issuance.

“The influx of deals in Q2 has been met with ample investor capital, with sponsors continuing to experience deal-upsizes and spread reductions,” Gallagher Re explained.

Gallagher Re also highlighted a 10% increase in property cat sidecar market size since the start of the year and noted that casualty sidecars are gaining traction, with several new entrants accessing the structure in H1.

This marks a growing willingness among ILS investors to engage with more complex and diversified risks outside the traditional property catastrophe space.

Looking ahead, Gallagher Re explained that 2025’s renewals are showing a consistent trend: a market in which the balance of supply and demand has tilted back toward reinsurance buyers.

Reinsurers are increasingly looking to deploy their significant capital, but they remain disciplined in their approach.

Wakefield, added: “Buyers generally experienced a more competitive reinsurance market at the July 1 renewal compared to recent years, with capacity available, even where demand increased, and reinsurers looking to grow.

“With these conditions in place, clients had the opportunity to challenge the status quo, and secure improvements to the structure and terms of their property and specialty reinsurance programs.”

Read all of our reinsurance renewal news coverage.

ILS drives structural flexibility and softer pricing at July renewals: Gallagher Re was published by: www.Artemis.bm
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Australian primary insurance giant Suncorp Group has purchased a smaller reinsurance tower at the mid-year 2025 renewals and despite having spent time assessing alternative reinsurance structures, at this stage there appears to have been minimal change to its protection buying strategy.

A year ago, Suncorp renewed its main catastrophe reinsurance tower to provide protection up to $6.75 billion, having lifted the top by $350 million at the mid-year 2024 renewal.

For the 2025 to 2026 year, Suncorp has reduced the size of its reinsurance tower and also non-renewed a drop-down arrangements, as it seemingly seeks to reduce its costs of protection, even while acknowledging improved reinsurance market conditions, from a buyer perspective.

The renewed reinsurance tower features catastrophe limit up to a smaller $6.3 billion for the coming year, with catastrophe reinsurance available for major events from the same $350 million retention, for first and second events.

There are subtle changes to the overall reinsurance structure, that should enhance its responsiveness for the buyer, but in the main adjustments seem minimal.

Recall that, earlier this year, Suncorp said it was assessing “alternative” reinsurance structures for its next renewal at the mid-year, as the company looks to optimise its protection arrangements.

While there may be alternative capital embedded in the renewed program, on a collateralized or fronted basis, the insurer has not taken the step of venturing into the catastrophe bond market, or launching any kind of insurance-linked securities (ILS) structure of its own.

Suncorp said today that the review “explored a range of markets and both traditional and alternative reinsurance structures, including whole of account quota shares and aggregate cover programs,” with a goal to optimise for shareholder value.

“The review concluded that our clear objectives of optimising outcomes for our shareholders and customers would be best met by the program announced today,” Suncorp CEO Steve Johnston.

“In the current market, capacity has increased significantly for main catastrophe covers and pricing has improved. For other types of cover, including aggregate covers, capacity remains limited and expensive.”

Johnston added that Suncorp will “continue to monitor both traditional and alternative reinsurance markets and assess
future opportunities in reference to the considerations outlined above.”

Johnston also commented on reinsurance costs, saying, “Over the past couple of years, reinsurers materially reset their appetite for deploying capital to cover smaller or mid-sized events in both Australia and New Zealand. This, and increased reinsurance pricing, has seen the cost of insurance, particularly home insurance, increase rapidly.

“While the pricing of household policies will continue to reflect underlying risks and broader economic inflation, it’s pleasing that this major input cost appears to have stabilised.”

The main Suncorp catastrophe cover will protect the company against losses from $500 million and $6.3 billion, with one full prepaid reinstatement.

A multi-year structured reinsurance solution has been brought in to replace the group cover that reduced the retention to the aforementioned $350 million. This new addition features a profit share mechanism and reinsurer losses are capped at $600 million over a three-year term.

Suncorp noted that this new multi-year solution comes with lower cost, as well as the potential profit share benefits.

In addition, a second reinstatement of the $500 million to $1 billion layer of the main catastrophe program has been added, while citing it as inefficient, Suncorp said a dropdown limiting losses from a second event to $250 million has not been renewed.

Group dropdown covers have been purchased to reduce the third and fourth event retention to $250 million as well, and an Australian dropdown program continues to reduce retention for a third and fourth event in Australia to $150 million, while in New Zealand, buydown cover (including a prepaid reinstatement) has been purchased to cover between NZ$200 million and the Group’s maximum event retention of $350 million, in line with last year.

Analysts are calling the Suncorp program minimally changed this morning, saying that the company appears to be trying to further reduce its protection costs, despite its growing exposure base.

The upshot of the slightly changed reinsurance program is an expectation of slightly lower costs again for Suncorp, “reflecting strong reinsurance rate reductions and changes to the program, partially offset by exposure growth in the portfolio,” the company explained.

After alternative structure review, Suncorp buys less reinsurance with minimal changes was published by: www.Artemis.bm
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Global reinsurance capital outpaced demand at the 2025 mid-year renewals, fostering a more competitive environment for buyers, according to Aon. The firm also estimated that insurance-linked securities (ILS) capital remained stable at $115 billion as of the end of the first quarter, underscoring the ongoing strength and resilience of alternative capital sources.

“Coming at the start of the Atlantic hurricane season, June 1 and July 1 are key renewals for the U.S. and Latin America, as well as Australia and New Zealand. Despite an active first half for natural catastrophe losses, mid-year renewals experienced a broadly competitive environment as reinsurers, ILS markets and new entrants sought to deploy capacity and grow market share,” Aon explained in its mid-year 2025 renewals Reinsurance Market Dynamics report.

Global reinsurer capital rose by $5 billion to $720 billion in the first quarter of 2025, surpassing the previous record of $715 billion set in 2024, despite the financial impact of the California wildfires.

According to Aon, this growth was driven by strong retained earnings among established players, with two-thirds reporting double-digit annualised returns on equity.

At the same time, the catastrophe bond market posted record issuance in the first half of 2025 with the two largest transactions in the history of the market, each exceeding $1.5 billion.

In early May, Florida’s Citizens Property Insurance Corporation secured a then-record $1.525 billion of reinsurance from its Everglades Re II Ltd. (Series 2025-1) issuance.

Later on that month, State Farm then secured a record amount of reinsurance limit from the capital markets in a single visit in cat bond form, as it priced $1.55 billion of multi-peril protection via sponsorship of four Merna Re (Series 2025) cat bonds.

Moreover, Aon went on to note that reinsurance capacity was more than sufficient to absorb a near 10% increase in global demand for property catastrophe limit.

“The growth was largely driven by insurers in the U.S., influenced by significant depopulation of Florida’s windstorm insurer of last resort, Citizens. Other factors included inflation, model changes and revised views of natural catastrophe exposure, with recent wildfires in the U.S. and floods in Brazil prompting insurers to evaluate loss potential and protection needs,” the broker explained.

Furthermore, Aon estimates that equity reported by global reinsurers rose by $5 billion to $605 billion in the first quarter of 2025, continuing the recovery seen since 2022.

“The primary drivers have been strong earnings, following the market ‘reset’ in 2023, and the reversal of unrealized losses on fixed-income securities, due largely to the “pull-to-par” effect. Growth has been partly offset by increased capital returns to investors, as reinsurers look to reward loyalty,” Aon noted.

The broker added: “Alternative capital is estimated to have remained at a record high of $115 billion, with attractive market conditions encouraging existing participants to reinvest profits and new entrants to commit funds.

“Increased investor appetite is allowing many traditional reinsurers to expand their sidecar and/or catastrophe bond programs, enabling the deployment of additional capacity.”

Read all of our reinsurance renewal news coverage.

Reinsurance capital outstrips demand at mid-year renewals: Aon was published by: www.Artemis.bm
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