{"id":609,"date":"2025-07-01T11:45:59","date_gmt":"2025-07-01T11:45:59","guid":{"rendered":"http:\/\/www.atsnorfolk.com\/?p=609"},"modified":"2025-07-02T14:14:35","modified_gmt":"2025-07-02T14:14:35","slug":"capital-growth-and-pricing-discipline-drive-stability-at-mid-year-reinsurance-renewals-guy-carpenter","status":"publish","type":"post","link":"http:\/\/www.atsnorfolk.com\/index.php\/2025\/07\/01\/capital-growth-and-pricing-discipline-drive-stability-at-mid-year-reinsurance-renewals-guy-carpenter\/","title":{"rendered":"Capital growth and pricing discipline drive stability at mid-year reinsurance renewals: Guy Carpenter"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

The global reinsurance sector has entered the second half of 2025 with strong momentum, driven by a potent mix of capital inflows, favourable underwriting conditions, and robust investor returns, according to reinsurance broker Guy Carpenter.
\n<\/span>
\n\"guy-carpenter-logo\"Despite ongoing global economic volatility and insured losses nearing $70 billion through the first half of the year, the renewal trends seen at January 1 have largely continued, according to Marsh McLennan\u2019s global risk and reinsurance specialist.<\/p>\n

Although the first quarter of 2025 saw elevated loss activity, driven largely by the $40 billion in insured losses from the Los Angeles wildfires, insured loss activity moderated in the second quarter. As a result, aggregate losses are now flat compared to the inflation-adjusted five-year average.<\/p>\n

Despite these events, reinsurers absorbed the impact without meaningful capital impairment. The sector ended 2024 with a record $607 billion in capital, and growth of 5% to 7% is forecast by year-end 2025.<\/p>\n

In addition, reinsurer returns on equity were reportedly 16% in 2024 and are projected to be 15% in 2025, while reinsurance capital closed 2024 at an all-time high of $607 billion.<\/p>\n

Guy Carpenter anticipates seeing a continuation of this trend, with capital growth of 5% to 7% by year-end 2025.<\/p>\n

Dean Klisura, President and CEO, Guy Carpenter, commented: \u201cThe current trading environment is one of the most favorable for reinsurers in many years, evidenced by the additional capital being attracted to the sector.<\/p>\n

\u201cWe see this as a tremendous opportunity to re-balance the market dynamics in our clients\u2019 favor. More capacity will continue to moderate pricing, give clients more diversification of reinsurance partners, and provide better solutions to protect earnings.\u201d<\/p>\n

\u201cReinsurers easily absorbed the 5% to 7% increase in client demand for property catastrophe limit. Moreover, reinsurer capacity exceeded demand by more than 20%, driving risk-adjusted rate decreases of 5% to 15% for non-loss impacted programs, and risk-adjusted rate increases of 10% to 20% for loss-impacted programs,\u201d Guy Carpenter explained.<\/p>\n

Against this backdrop, the insurance-linked securities (ILS) market, particularly catastrophe bonds, has shown remarkable resilience and scale.<\/p>\n

Issuance so far in 2025, across 144A cat bonds and private cat bonds sat at over $17.56 billion for the first half of 2025,<\/a> which is very close to the Artemis-tracked annual record of $17.7 billion from full-year 2024, as new quarterly issuance records were set in both Q1 and Q2 this year.<\/p>\n

Download your copy of the new Q2 2025 Artemis cat bond market report here<\/strong> to read more.<\/strong><\/a><\/p>\n

In 2025, GC Securities, Guy Carpenter\u2019s capital markets arm, has led the way with 23 catastrophe bond placements, more than any other broker in the market year-to-date. This level of activity underscores continued investor demand for structured reinsurance risk, particularly as underlying insurance market conditions remain stable and loss activity has normalised.<\/p>\n

Shifting focus to casualty, Guy Carpenter reported continued discipline at the Spring 2025 renewals, with two factors helping drive more stable outcomes.<\/p>\n

\u201cFirst, reinsurers and clients evaluated trading relationships across property, casualty, and specialty programs. Reinsurers looked to find balanced support across all programs for a given client.<\/p>\n

\u201cSecond, carrier underwriting actions have improved casualty economics for reinsurers, particularly proportional programs where insurers share ground-up premium and loss.<\/p>\n

\u201cAs a result, through mid-year renewals, ceding commissions on proportional placements generally renewed flat to slightly down following 18-24 months of reductions. Excess of loss placements continued to face rate pressure as loss severity drives more volatility for reinsurers \u2013 generally rates increased 10-20%, although each renewal was highly customized based on the individual portfolio,” the broker concluded.<\/p>\n

Read all of our reinsurance renewal news coverage.<\/a><\/strong><\/p>\n

Capital growth and pricing discipline drive stability at mid-year reinsurance renewals: Guy Carpenter<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. The global reinsurance sector has entered the second […]<\/p>\n","protected":false},"author":1,"featured_media":611,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reinsurance-renewals"],"_links":{"self":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/comments?post=609"}],"version-history":[{"count":2,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/609\/revisions"}],"predecessor-version":[{"id":612,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/609\/revisions\/612"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media\/611"}],"wp:attachment":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media?parent=609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/categories?post=609"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/tags?post=609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}