Aon estimates global reinsurer capital reached a new high of $US790 billion ($1.14 trillion) at the end of the first quarter as inflows supported catastrophe bonds and sidecars.

Traditional reinsurer equity remained stable from December at $US649 billion ($939 billion), while third-party capital increased to $US141 billion ($204 billion) from $US136 billion ($197 billion).

Reinsurer appetite continues to increase and broaden, with Florida experiencing one of the most positive renewals in a decade at mid-year and insurers in Latin America and Australia and New Zealand also benefiting.

Gallagher Re says reinsurer estimated returns on equity of 14%-15% for this year remain strong after a near-19% return in 2025, supporting a willingness to deploy capacity.

“The data shows a market defined by strong capital, healthy returns and increasing competition, all of which are improving outcomes for clients,” Gallagher Re CEO Tom Wakefield said.

“Importantly, this is not only about price. The same forces are enabling clients to access more tailored and efficient reinsurance solutions, often at price points that would not have been achievable in recent years.”

Property catastrophe had the most pronounced mid-year pricing movement, with reductions of 20%-25% or more for the best-performing accounts in North America and similar trends in other regions.

Natural catastrophe losses of $US38 billion ($55 billion) in the first half, as of June 15, were below the 10-year average and reinsurers enter the second half with healthy catastrophe budgets, Gallagher Re says.

Chief science officer Steve Bown says there is a higher probability of a quieter North Atlantic hurricane season during El Nino conditions.

“If this El Nino year continues through Q3 and Q4 without significantly costly single events, capital is likely to continue to build, further adding to supply,” he said.

Guy Carpenter’s global property catastrophe rate-on-line index decreased from minus 12% at January to minus 16% at mid-year.

“In the current market conditions, cedents have secured competitive pricing and terms on their reinsurance programs, but many are also exploring alternative options, such as parametric solutions and sidecars, as ways to complement their traditional protection,” CEO Dean Klisura said.

“We expect this trend to continue as we move through the remainder of the year.”

In the marine market, pricing implications from the Baltimore bridge collapse’s increased loss estimates will not be seen until the 2027 renewal season.