{"id":677,"date":"2025-07-30T10:00:36","date_gmt":"2025-07-30T10:00:36","guid":{"rendered":"http:\/\/www.atsnorfolk.com\/?p=677"},"modified":"2025-07-30T14:27:19","modified_gmt":"2025-07-30T14:27:19","slug":"retrocession-softens-faster-at-mid-year-2025-renewals-tilts-in-buyers-favour-autonomous","status":"publish","type":"post","link":"http:\/\/www.atsnorfolk.com\/index.php\/2025\/07\/30\/retrocession-softens-faster-at-mid-year-2025-renewals-tilts-in-buyers-favour-autonomous\/","title":{"rendered":"Retrocession softens faster at mid-year 2025 renewals, tilts in buyers favour: Autonomous"},"content":{"rendered":"

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

Renewals and purchases of catastrophe retrocessional protection saw their pricing soften faster than property catastrophe reinsurance at the June and July 2025 mid-year renewal season, which tilted the market in the favour of retro buyers this year, analysts at Autonomous have highlighted.
\n<\/span>
\n\"autonomous-research-logo\"It suggests increased capital and capacity was available for deployment to retrocessional opportunities at the time, as well as rising appetites for the risk.<\/p>\n

Which Autonomous’ analysts note provided an opportunity for some reinsurers to buy more protection, given there was a delta between the pricing across their overall portfolios and the retrocession market at mid-year.<\/p>\n

In the primary reinsurance space it’s been well-documented that the top-layers of towers saw the most price pressure, while lower layers have seen their pricing hold up better at the renewals.<\/p>\n

Recall that, Howden Re, the reinsurance broking arm of Howden, said that risk-adjusted property catastrophe reinsurance rates-on-line fell in a range from flat to down 20% at the June 1st renewals<\/a>.<\/p>\n

The broker specifically called out ILS capacity as adding flexibility and competitive tension in top-layers of towers, with remote-attaching cat XoL layers among those that saw the steepest rate reductions, typically in the 10% to 20% range, while riskier layers saw pricing fall less.<\/p>\n

When it comes to retrocession though, there are a number of different and in some cases large capital providers and markets that have a particular appetite for these opportunities, an appetite that has been increasing, we hear.<\/p>\n

As a result of which, even though retro opportunities typically see capital deployed at risk-return levels more akin to mid to lower layers of primary reinsurance towers, the softening is said to have been more acute in the retro space.<\/p>\n

We’re told that a number of traditional retro markets exhibited greater appetites for risk at these mid-year renewals in 2025, while also finding some new opportunities given some incremental retro purchases, as well as top-ups to loss affected programs.<\/p>\n

Autonomous’ analyst team highlighted that this presented buyers with a market opportunity, enabling them to expand their retro protections should they choose.<\/p>\n

“The supply-demand balance for global retro continues to tilt in the buyers\u2019 favour, which is a positive for the bottom-line of the reinsurers as they can choose to purchase more cover for the same cost, or be more efficient in their purchases,” the analysts explained.<\/p>\n

As we reported recently, another factor that helped retro capacity at the mid-year reinsurance renewals was the fact some market participants took a commercial view on collateral trapping<\/a>, enabling more capital to be recycled more quickly and boosting the overall availability of retrocession.<\/p>\n

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

Retrocession softens faster at mid-year 2025 renewals, tilts in buyers favour: Autonomous<\/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. Renewals and purchases of catastrophe retrocessional protection saw […]<\/p>\n","protected":false},"author":1,"featured_media":679,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-677","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\/677","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=677"}],"version-history":[{"count":2,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/677\/revisions"}],"predecessor-version":[{"id":680,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/677\/revisions\/680"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media\/679"}],"wp:attachment":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media?parent=677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/categories?post=677"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/tags?post=677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}