property catastrophe

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.

RenaissanceRe, the Bermuda headquartered reinsurance company and third-party capital manager, has announced the expansion of Adria Da Breo Richards’ role to include management of its Property Cat Assumed Retro portfolio, alongside her current role overseeing property catastrophe reinsurance portfolios for global clients.

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.

As per David Flandro, Managing Director, Head of Industry Analysis and Strategic Advisory at reinsurance broker Howden Re, “if it wasn’t obvious already, we are now firmly in the hard market softening phase of the rating cycle.”

According to equity analysts from Berenberg, alternative capital and insurance-linked securities instruments have become an increasingly important component of property catastrophe reinsurance limit, notably in the United States as cedants see value in diversified sourced capital.

Speaking during an analyst call for Hannover Re’s Q2 2025 financial results this week, Sven Althoff, Member of the Executive Board for Property & Casualty (P&C), explained that despite natural catastrophe pricing being under pressure, terms and conditions and importantly attachment points remain stable.

Cincinnati Financial Corporation purchased an additional layer on its property catastrophe reinsurance treaty with a limit of $300 million at its July 1, 2025 renewal, increasing the total limit on its reinsurance tower from $1.5 billion to $1.8 billion.

Reinsurance broker Guy Carpenter has updated its property catastrophe reinsurance rate on line indices today and the latest data shows that after the April and mid-year renewals, property cat reinsurance rates have fallen 8.1% globally, 6.7% in the United States and a more significant 15.9% in the Asia Pacific region.

Reinsurers’ probable maximum loss (PML) exposures as a percentage of equity capital have remained relatively flat year-over-year at January 1, 2025, even as property catastrophe reinsurance pricing begins to decline, according to a new report from Moody’s Ratings.

Despite signs of softening at key renewal periods, returns on capital in the property catastrophe reinsurance sector remain “very attractive,” according to analysts at Peel Hunt, who noted that the market continues to deliver internal rates of return (IRRs) well above the cost of capital.