property catastrophe

Hannover Re’s property and casualty reinsurance subsidiary in Germany anticipates continued strong reinsurance demand at the next rounds of renewals, but notes that rising capacity levels are driving more competition on pricing and terms, while also highlighting insurance-linked securities (ILS) as a complementary offering for clients.

Property insurance claims severity and costs are rising in the United States, even during periods where the number of catastrophe events designated were stable. Verisk’s latest data shows the second-quarter of 2026 could become one of the most costly for insurers on an average property claims cost basis.

While property reinsurance and insurance-linked investment strategies are often viewed as carrying significant tail risk, Agecroft Partners believes that carefully constructed portfolios and disciplined underwriting can help to manage downside volatility more effectively than headline risk profiles may suggest.

Members Capital Management Limited (MembersCap) executives told us the company has recently launched its first catastrophe bond fund strategy to expand its offering to clients, while also disclosing that it was the investor behind a recent innovative industry-loss warranty (ILW) transaction.

Reinsurance broker Lockton Re has successfully executed what the firm believes is the first industry-loss warranty (ILW) that combines property catastrophe and cyber risk triggers within a single limit structure for a protection buying client.

The mid-year 2026 property catastrophe reinsurance renewals are seeing pricing outcomes skewing towards the worst end of a -15% to-20%+ range, while catastrophe bonds have become more of a competitive threat to reinsurers now given longer-durations of cover and better rates, according to Aditya Dutt, President of Aeolus Capital Management.

Global reinsurer SCOR has reported starting the year with higher net income and return on equity, while the company continues to prune in certain liability classes, but maintains its stance on price adequacy in property catastrophe risks by growing into what it acknowledges is a competitive marketplace.

For global re/insurance group Everest, the Mt. Logan Re third-party capital vehicle continues to build momentum throughout 2026, with its assets under management surpassing $2.6 billion, and according to Everest’s President and CEO, Jim Williamson, the vehicle continues to play an increasingly important role in the company’s capital model.

Property catastrophe reinsurance rates-on-line continued to fall at the April 1st renewals and for the United States, broker Guy Carpenter’s index now shows that 2026 is experiencing the sharpest fall in US property cat pricing since 2014.

Speaking today, Hannover Re’s Sven Althoff explained that softening trends seen in property catastrophe reinsurance are expected to continue through 2026, while he also said that the ongoing conflict in the Middle East could have ramifications for certain specialty lines the reinsurance firm underwrites.