Mid-year renewals suggest reinsurer appetite remains strong but has not compromised underwriting discipline, according to Gallagher Re.

“Reinsurers came into the renewal in good financial shape … with capacity available even when demand increased,” the broker says in a market update.

“After several highly profitable years, reinsurers are increasingly looking to deploy their significant capital, but they are disciplined in approach.

“This is a market where cedants and brokers have room to manoeuvre and reinsurers to innovate – and we are pushing beyond rates to a broader optimisation of reinsurance placements.”

In property covers, the Asia-Pacific region had significantly more reinsurance capacity than demand, the update says.

“There were a small number of new entrants looking to join panels or grow new shares achieved in 2024, including several Asian reinsurers looking to grow [Australia and New Zealand] books to diversify their portfolio. 

“The majority of reinsurers were also looking to best position themselves with cedants this renewal, given recent and likely future insurer consolidation.”

Risk loss-free property rates for Asia-Pacific accounts moved between minus 2.5% and minus 10%; risk loss-hit moved 0% to 2.5%; and catastrophe loss-free between minus 5% and minus 12.5%.

See the report here.