property catastrophe

Howden Re has reported that risk-adjusted catastrophe excess-of-loss (XoL) reinsurance rates-on-line for Japan saw reductions of 10-15% at the April 1st 2025 reinsurance renewals, as pricing “eased from a high base” and sellers sought to protect or grow positions at the renewal amidst higher competition and greater supply.

Following a mixed pricing environment at the January 1st, 2025, reinsurance renewals, analysts at Moody’s anticipate property catastrophe reinsurance pricing to stabilise somewhat at the upcoming US mid-year renewals, driven by the impacts of Hurricanes Helene and Milton, and the more recent California wildfires.

Property catastrophe reinsurance rates declined across the globe at the January 1st 2025 reinsurance renewals, with broker Guy Carpenter’s rate-on-line indices for the world, US, Europe and Asia Pacific all falling to start the new year.

Strong appetites from traditional reinsurance and alternative capital providers have resulted in excess capacity that has served to drive loss-free property catastrophe rates down between 5% and 15% at the January 1st 2025 renewals, according to Guy Carpenter.

Non-life insurance premium growth may slow after this year, as the re-pricing of risk effect evens out. But, global reinsurer Swiss Re believes that rising exposure to natural catastrophe events is set to continue driving property insurance market premiums higher, resulting in a corresponding increasing need for reinsurance and risk transfer.

Property catastrophe reinsurance rates-on-line slowed further at the recent mid-year renewals, with a general flat to slightly down rate environment, resulting in broker Guy Carpenter’s U.S. Property Catastrophe Rate-On-Line Index now being up by just 1.2% in 2024.

Catastrophe reinsurance pricing for programs in the United States is seeing “material softening” in minimum rates-on-line, broker Gallagher Re has said, as reinsurers “abandon” the need for top-layer pricing to exceed the risk-free rate.

Bermuda-based Everest Group’s Q4 2023 results show that the re/insurer continued to expand in property catastrophe risks in the hard market environment, with the firm highlighting a successful January 1 renewals in which it was able to fully deploy remaining capital raised in the second quarter.

The property catastrophe reinsurance market saw a “more consistent trading rhythm” at the 1/1 2024 renewals, but still some clients have been left holding more volatility, according to Guy Carpenter CEO Dean Klisura.

Property catastrophe reinsurance rates-on-line slowed their trajectory significant at the January 2024 renewals, but in the United States while the slow-down was a little more severe than some other regions, US property cat reinsurance rates are now a stunning 116% up since 2017, according to Guy Carpenter’s Index.