Reinsurance renewals news

Alternative reinsurance capital, so that deployed through insurance-linked securities and related collateralized structures, reached a new high of $124 billion as of September 30th 2025, according to Aon and the broker expects the growth trend to persist as third-party investors show “consistent” appetite for returns from the sector.

After a significant year for insurance-linked securities (ILS) in 2025, as the market transitions into 2026, it will be essential to observe how the industry evolves, especially through the introduction of new product types, the involvement of first-time participants, and the expansion of peril classes, according to Lara Mowery, Chief Commercial Officer at reinsurance broker […]

At the January 2026 reinsurance renewals reinsurance broker Howden Re estimates that risk-adjusted pricing for property catastrophe treaty business declined by 14.7%, marking the largest year-on-year reduction since 2014, while property retrocession pricing fell further by 16.5%.

The insurance-linked securities (ILS) market is exerting growing influence on global reinsurance market dynamics according to broker Gallagher Re, who reports property catastrophe pricing as down between 10% and 20% at the key January 2026 renewals.

At the January 1st 2026 reinsurance renewals property catastrophe rates were broadly softer around the globe as the weight of capital in the market depressed prices, while broker Guy Carpenter’s indices show that rates-on-line softened fastest in Europe.

Third-party capital deployed in reinsurance through insurance-linked securities and other alternative structures is now forecast to have grown over 12% during the course of 2025 to a record $120 billion, as broker Guy Carpenter and AM Best lift their projection from the 7% expansion anticipated earlier this year.

Global insurance and reinsurance broking group Aon has reported that cedents benefited from favourable dynamics at the January 1st reinsurance renewals, aided by record levels of capital following another strong year for reinsurers, along with a benign 2025 Atlantic hurricane season which the firm says led to “competitive tension” in the market.

With reinsurance sidecars having emerged as a key capital instrument for re/insurers aiming to utilise third-party capital, the current growth and momentum within the space has been concentrated in ceded reinsurance strategies, casualty-focused portfolios; and MGAs, MGUs and capital-light entities, according to broker Guy Carpenter.

The January 1st 2026 reinsurance renewals saw “accelerated softening” as excess capital in the market weighed on rates, while property catastrophe renewals saw double-digit declines with investor appetite for insurance-linked securities a contributing factor, according to broker Guy Carpenter.

During an interview, executives at Howden Capital Markets & Advisory outlined how the catastrophe bond market has evolved into a well-established asset class that helps strengthen systemic resilience for public and private entities, while also acknowledging how private ILS continues to present attractive opportunities for cedants and investors heading into 1.1 and beyond.