At the June 1, 2025 renewals, Howden Re observed a continued moderation in property catastrophe reinsurance pricing. This follows a period of record rate increases and market dislocation that began in recent years.
Rate Changes Varied by Risk Profile
Risk-adjusted online rate changes ranged from flat to a 20% reduction. Final terms depended heavily on each program’s loss history and structure. Strong-performing portfolios saw the deepest cuts, while higher-risk accounts generally held flat.
Capacity Restoration with Caution
Reinsurers selectively restored capacity, but remained disciplined. They focused on core client relationships and resisted broad expansion. Most cedents, however, found it easier to negotiate favorable terms than in prior years.
Demand Strong, Programs Fully Booked
Renewal demand was robust. The majority of programs were fully subscribed well before June 1. Reinsurers supported placements across all layers—both top-of-program and structural “head” layers—demonstrating a wider market recalibration.
Mid-Year Renewals Bolstered by New Capital
Mid-year renewals saw fresh capital enter the market. New reinsurers and syndicates provided additional capacity. Catastrophe bond issuance also remained strong, further boosting supply for key layers—especially long-tail coverages, which saw an effective capacity increase of 10–20%.
Earlier Renewals and Broader Appetite
Ceding insurers moved to secure renewals earlier than in previous cycles. Reinsurers showed a willingness to write entire programs, particularly when cedents sought multiple layers or bundled products in one transaction.
Growing Interest in Multi-Event Coverage
In addition to traditional excess-of-loss treaties, reinsurers expanded support for property & casualty (P&C) excess-of-loss structures. They also expressed new interest in comprehensive, multi-event policies designed to protect against high-frequency natural hazards.
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