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Renewal Resource Center: mid-year renewal release and insights

Renewal 7-1-24

A Transitioning Reinsurance Market Responds to Cedents’ Increased Demand Through Mid-Year 2024

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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Dean Klisura

“Well-positioned cedents achieved greater concurrency and pricing consideration in this positive but still cautious trading environment. However, headwinds, including unsettled macroeconomic conditions and the geopolitical environment, are leading to shifting risk appetites. Guy Carpenter provides perspective to our clients to help differentiate them and find the best solutions possible."

Dean Klisura, President & CEO

  • John Trace

    “At mid-year, increased demand was met with adequate capacity while individual risk factors still heavily influenced outcomes. Property overall saw some areas of moderating pricing even amidst measurable increase in demand. Casualty programs continued to be dependent on highly technical, data-driven insights, including quantifying mitigation of prior year developments.”

    John Trace, CEO, North America
  • David Priebe

    "The reinsurance industry has responded to measurably increased demand in 2024, which has materialized at a level above many expectations. Reinsurers’ attractive returns and improved capital positions are facilitating increased capacity in several sectors. Guy Carpenter is set to strategically help our clients in this new era of risk.”

    David Priebe, Chairman
  • Tony Gallagher

    “In Asia Pacific, first half-year renewals proceeded orderly, with rate softening across non-loss affected programs. Terms, conditions and structures stabilized with minor cedent-driven changes. Demand in the region rose by 4%, and supply increased by 10%, which is leading to some softening of market conditions.”

    Tony Gallagher, CEO, Asia Pacific

For additional renewal information, download our Mid-Year Renewal Insights document

Here
  • Paul Moody

    “The majority of mid-year placements were completed early to on time in this mixed market environment where underwriting rigor continued as reinsurers aim for a continuation of profitable returns.”

    Paul Moody, CEO, UK
  • James Boyce

    “Mid-year property retrocession renewals saw an increase in demand, which was driven by improved purchasing dynamics in comparison with 2023, underlying portfolio growth and an active North Atlantic wind season forecast. Early expectations were that mid-year pricing would reduce beyond Q1; however, the uptick in demand in late April through to June caused pricing levels to hold.”

    James Boyce, CEO of Global Specialties
  • Laurent Rousseau

    “For catastrophe bonds, Q2 was the most active quarter recorded. Pricing has been dynamic, and for the remainder of 2024 a heavy maturity schedule should drive continued increased issuance activity. However, availability of capital will depend upon the results of this year’s wind season.”

    Laurent Rousseau, CEO, EMEA and Global Capital Solutions

For Media Inquiry

  • Jennifer Ainslie, Head of EMEA Marketing & Communications

    +44.20.7357.2058

  • Eric Stenson, AVP, Content Specialist

    +1.917.428.5710

Read more from Guy Carpenter Insights

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January 2024 Renewals

A responsive reinsurance market has materialized at January 1, 2024 renewals, reflecting ample capacity and a commercial approach to trading partnerships, albeit with continued underwriting rigor.

Reinsurance capacity increased through year end, driven by rebounding capital in the sector and healthy reinsurer returns, estimated to be near 20% for 2023. Guy Carpenter, in partnership with AM Best, estimates total dedicated reinsurance capital increased by 10% compared to year-end 2022. Differing from past years following a major market correction, capital growth was driven by existing reinsurers with no start-up class of 2023.

To Read Full Press Release >>

July 2023 renewals

The broader market trends seen at January 1, 2023 continued at mid-year renewals, but with improved timing and concurrence around terms and conditions. While property pricing saw continued risk-adjusted rate increases in many segments, the average change moderated from January 1.

Global property catastrophe reinsurance risk-adjusted rate increases ranged from +10% to +50%, with loss-impacted clients often seeing higher pricing. In the US, property catastrophe reinsurance risk-adjusted rate increases were on average the highest in 17 years, with loss-free accounts generally up +20% to +50%.

The preliminary year-to-date Guy Carpenter US Property Catastrophe Rate on Line Index, an alternative measure of price change that incorporates the impact of structural adjustments and current views of risk on actual dollars paid, increased 35% for January through July renewals. 

To Read Full Press Release >>

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