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Renewal Resource Center

July 1, 2025 Reinsurance Renewal

Latest Insights
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Strong returns in reinsurance sector attracts capital, leading to favorable client outcomes

Global volatility persists but elevated insured loss activity seen in the first quarter moderated

Despite global economic volatility and insured loss activity nearing $70 billion through the first half of 2025, reinsurance renewal trends seen at January 1 continued including:

  • Strong reinsurer balance sheets driving appetite for growth
  • Excess property capacity and moderating pricing 
  • Disciplined casualty underwriting
  • Reinsurer focus on holistic client relationships to grow their portfolios

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Dean Klisura

“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.”

Dean Klisura, President & CEO of Guy Carpenter

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January 2025 Renewals

At January 1, non-loss-impacted property catastrophe renewals saw notable risk-adjusted reinsurance rate reductions of 5% to 15%. However, there was a range of pricing outcomes that varied by region, attachment point and reinsurer views of price adequacy.

Property catastrophe renewals were consistently oversubscribed as reinsurer appetite increased by 10% to 15%, while we estimate demand only increased by approximately 5%. Rate reductions and additional capacity reflect strong reinsurer appetite driven by:

  • Another profitable year in 2024, featuring projected average reinsurer returns on equity of 17.3%,
  • Total dedicated reinsurance capital increasing by 6.9% to $607 billion,
  • Continued reinsurer discipline around property catastrophe program attachment points and pricing, and
  • Meaningful cedent actions to improve underlying portfolio profitability (rate improvement, limit management and disciplined risk selection).

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July 2024 Renewals

Mid-year renewals reflected a transitioning reinsurance market meeting demand in a dynamic trading environment. Loss-free property programs saw easing of pricing, even as demand increased. Casualty renewal outcomes varied by sublines as well as reinsurance type. General liability and excess/umbrella placements that are US exposed experienced continued reinsurance pricing pressure for excess of loss programs, while quota share outcomes were tied to the amount of adverse development. 

The preliminary mid-year Guy Carpenter US Property Rate on Line Index is near flat year-on-year.

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