Reinsurers are in an “even better position” after first-quarter natural catastrophe losses fell below past averages, according to Gallagher Re.

The reinsurance broker says damage covered by the private insurance market and government-sponsored insurance entities was minimally estimated at $US20 billion ($27 billion) in the January-March period.

“This was 26% below the decadal (2016-25) average …  and 47% below the most recent five-year average,” Gallagher Re said in a report.

“The below-average tally of insured losses … will put the reinsurance market into an even better position to withstand higher individual or aggregate losses during the rest of the calendar year.

“Even given the continuing softening we saw at the January 1 and April 1 reinsurance renewals, it will require an anomalously high loss performance to meaningfully shift pricing behaviour.”

The broker’s Natural Catastrophe and Climate report says January storms in north America topped the list of costliest insured events in the quarter, bringing losses of $US4.1 billion ($7.7 billion).

Overall, US severe convective storms led to insured losses of at least $US7 billion ($9.78 billion).

The report says severe convective storms are a “growing risk” for the industry.

“In more recent years, the rapid expansion of rooftop and exterior technologies (e.g. rooftop solar) has led to a further elevation of SCS loss potential. This may also be expected to drive a greater share of losses in the years to come.”