Reinsurance renewals for April have continued a softening trend despite geopolitical volatility arising from the Middle East conflict, broker reports say.

“This renewal was completed in a largely benign property-catastrophe environment, insulated from the immediate disruption in the Gulf,” Howden Re head of industry, analysis and strategic advisory David Flandro said.

“That said, a sustained energy supply shock raises the risk of renewed inflationary pressure and higher interest rates, dynamics that have historically affected reinsurance capital and pricing across all lines, not just those directly exposed to the conflict.”

Howden Re says mid-year renewals are expected to face more complex conditions.

Upward pricing pressure across marine, energy and political violence is anticipated as impacts from the Strait of Hormuz crisis are absorbed and reinsurers reassess aggregation, event definition and Middle East exposure in specialty portfolios.

For property-catastrophe lines, moves will depend on first-half loss activity, and on macro consequences from energy pricing, inflation, interest rate shifts and capital market volatility.

Japan is a particular focus for the April renewals, while the mid-year is more critical for Australia.

Aon says in markets such as Japan, South Korea and India, buyers have secured double-digit rate reductions supported by plentiful capacity and relatively benign catastrophe losses.

US insurers also used favourable conditions to transfer more risk through increased limits, frequency covers and proportional transactions.

Competition was strong in property lines and reinsurance program lower layers, as reinsurers and insurance‑linked securities investors deployed capacity in pursuit of growth.

Aon estimates global reinsurance capital has reached a record $US785 billion ($1.14 trillion).

Reinsurance solutions international CEO Alfonso Valera says buyers are exploring a broader solutions mix to smooth earnings, lower cost of capital and support long-term planning.

“As volatility increases and primary market competition intensifies, insurers are increasingly using reinsurance as a strategic tool rather than a purely transactional purchase,” he said.

Gallagher Re says the April renewals continued January 1 themes, with cedants achieving significant risk-adjusted rate reductions across property and specialty lines, while casualty remained broadly stable.

It’s First View report says risk-adjusted rate declines of 15%-17.5% were seen for Japanese property catastrophe programs, while in other regions decreases accelerated to 7.5%-25%.

“There is an opportunity for clients to use the current window to reduce cost and to build the kind of structural protection that positions them well for whatever comes next,” Gallagher Re global CEO Tom Wakefield said.