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Renewal Resource Center

January 1, 2025 Reinsurance Renewal

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Strong reinsurer appetite drives excess property catastrophe capacity at January 1

At January 1, non-loss-impacted property catastrophe renewals saw notable risk-adjusted reinsurance rate reductions of 5% to 15%. However, there was a range of pricing outcomes that varied by region, attachment point and reinsurer views of price adequacy.

Property catastrophe renewals were consistently oversubscribed as reinsurer appetite increased by 10% to 15%, while we estimate demand only increased by approximately 5%. Rate reductions and additional capacity reflect strong reinsurer appetite driven by:

  • Another profitable year in 2024, featuring projected average reinsurer returns on equity of 17.3%,
  • Total dedicated reinsurance capital increasing by 6.9% to $607 billion,
  • Continued reinsurer discipline around property catastrophe program attachment points and pricing, and
  • Meaningful cedent actions to improve underlying portfolio profitability (rate improvement, limit management and disciplined risk selection).
Dean Klisura

"It is critical that reinsurers take a long-term view and are constructive partners for our clients. Renewal outcomes at year-end reflect reinsurers’ positive property experience over the last two years and casualty portfolios that are well-positioned for future profitability."

Dean Klisura, President & CEO of Guy Carpenter

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July 2024 Renewals

Mid-year renewals reflected a transitioning reinsurance market meeting demand in a dynamic trading environment. Loss-free property programs saw easing of pricing, even as demand increased. Casualty renewal outcomes varied by sublines as well as reinsurance type. General liability and excess/umbrella placements that are US exposed experienced continued reinsurance pricing pressure for excess of loss programs, while quota share outcomes were tied to the amount of adverse development. 

The preliminary mid-year Guy Carpenter US Property Rate on Line Index is near flat year-on-year.

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