Monte Carlo Reinsurance Rendez-Vous news

Speaking today at a briefing held in Monte Carlo at the Rendez-vous event, Fitch Ratings analysts said the expectation is that property catastrophe reinsurance rates will keep softening and attachments may decline somewhat, but through this they anticipate discipline from the ILS investor base.

The insurance-linked securities (ILS) market has reached a healthier equilibrium, but it is essential to preserve the balance between ensuring cedents are robustly supported and investors are appropriately awarded for putting their capital at risk, Luca Albertini, CEO of Leadenhall Capital Partners told Artemis.

During the Aon Reinsurance Solutions pre-Monte Carlo Rendez-vous briefing, senior executive Tracy Hatlestad said that the firm believes reinsurers can still achieve their ROE targets even with a further 10% or greater softening of property catastrophe rates-on-line at January 1 2026.

Swiss Re has highlighted the capital efficiency that a modern and layered risk transfer architecture brings to the property and casualty insurance market, seeing the capital markets and investors as now key elements in a chain that is supporting growing volumes of global risks.

Global reinsurance company Hannover Re sees an opportunity to further develop the integration of resiliency features within catastrophe bonds, having received positive feedback from the market and clients since the transaction for the North Carolina Insurance Underwriting Association (NCIUA), Executive Board Member Silke Sehm has told Artemis.

The convergence of reinsurance and capital markets is “alive and well”, as reinsurers increasingly lean on alternative capital and insurance-linked securities (ILS) products, Mike van Slooten from Aon’s Reinsurance Solutions division explained in a pre-Monte Carlo briefing today.

Alternative capital within the reinsurance market has “not yet reached its full capacity,” according to Guy Carpenter’s CEO of EMEA and Global Capital Solutions, Laurent Rousseau, who said today that his firm anticipates further growth of the ILS and capital markets backed capacity.

Leading rating agencies adjusted their outlooks for the global reinsurance sector yesterday, becoming in general a little more negative for prospects in the space and warning of higher competition. But still, the range of outlooks spans from positive, through stable, to deteriorating, suggesting uneven outcomes and that returns will still be attractive where discipline holds.

Andrew Newman, President of global reinsurance broker Gallagher Re, said today that if the firm’s pipeline is any indication of catastrophe bond market activity in the final quarter of 2025 and the first half of next year, “we won’t be surprised to see a fourth record-breaking year of issuance.”

Alternative capital remains a critical source of retrocessional reinsurance capacity for some of the biggest reinsurers in the market, with it seen to increase in importance for some of the top-tier companies over the last year, S&P Global Ratings has said.