European Reinsurance Market Strengthen ROE, Capital & Reserves Amid Market Shifts
European reinsurers recorded stronger return on equity (ROE) in 2023 and 2024, exceeding their cost of equity in three of the last four years
Reinsurance Market
Reinsurance market occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit their own total loss in case of disaster. By spreading risk, an insurance company takes on clients whose coverage would be too great of a burden for the single insurance company to handle alone.
The market size, measured by revenue, of the Reinsurance Carriers industry is $118.4bn.
Reinsurance can be divided into two basic categories: treaty and facultative. Types of reinsurance include facultative, proportional, and non-proportional.
Several common reasons for reinsurance include: 1) expanding the insurance company’s capacity; 2) stabilizing underwriting results; 3) financing; 4) providing catastrophe protection; 5) withdrawing from a line or class of business; 6) spreading risk; and 7) acquiring expertise.
In this section, we have collected the most current articles and reviews on the topic of the Reinsurance Market.
Global Re/Insurers Improved Underwriting Results & Capital Positions
Global re/insurers reported improved underwriting results and capital positions. These gains came alongside rising uncertainty around reserve development and expanding loss gaps
Bermuda (Re)Insurers Face Margin Pressure but Maintain Strong Returns in 2025
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
Europe’s Largest Reinsurers Reported Strong Financial Results
Europe’s four largest reinsurers—Munich Re, Swiss Re, Hannover Re, and SCOR—reported strong financial results in 2024
Impact of GLP-1 Receptor Agonists on Medical Trends and Reinsurance
How GLP-1 therapies are altering medical practices and insurance structures, prompting reinsurers to adjust their strategies to align with emerging risk profiles
2025 Lloyd’s Market Policies & Practices Report Shows Progress Toward Inclusion & Performance
Lloyd’s has shared the results from the 2025 Lloyd’s Market Policies and Practices (MP&P) return with market firms, which shows continued progress towards an inclusive
EU Public-Private Reinsurance Scheme for Climate-Related Losses
EU insurance markets could gain if recent proposals for a bloc-wide public-private reinsurance scheme for climate-related losses move forward
Lloyd’s Lab Drives Insurance Innovation with $1 bn in Capital for Startups
Lloyd’s Lab accelerator has become a major force in insurance innovation, securing over $1 bn to support startups transforming the industry, launching 6 years ago
1/1 Reinsurance Renewals: Capacity Expands, but Underwriting Discipline Holds
Reinsurance renewals for 2025 reflect a shift in market conditions. Property reinsurance rates have softened, though profitability remains strong
Global Reinsurers to Maintain Strong Profitability in 2025
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts were renewed on 1 January
New War Risk Reinsurance Facility for Ukraine’s Commercial Property Sector
McGill in partnership with FortuneGuard and ARX introduced a new war risk reinsurance facility to provide commercial property coverage in Ukraine
London Re/Insurance Market Strengthens Digital & Enhanced Underwriting
The London re/insurance market sees a growing push toward digital approaches. Enhanced underwriting stands out as a new direction for companies
Lloyd’s Pandemic Model Projects $13.6 trln Global Economic Loss Over 5 Years
A potential future human pandemic could cause $13.6 tn in global economic losses over five years, according to a systemic risk scenario from Lloyd’s
Lloyd’s CEO: Re/Insurance Industry Must Evolve Faster Than Ever
The insurance and reinsurance sectors face an expanding risk landscape, driven by critical challenges such as climate change and cyber threats
APRA’s Proposed Reinsurance Reforms: Impact on Australian Insurers’ Credit Profiles
Changes to reinsurance-related capital requirements proposed by the Australian Prudential Regulation Authority strengthen Australian general insurers’ credit profiles
Global Reinsurance Market Trends. Composite’s ROE Reaches Five-Year High
In 2024, reinsurance premium rates increased, interest rates remained high, and capital markets performed well. The composite achieved its highest ROE in five years
Reinsurers Prepare for Rate Hikes Amid Rising U.S. Casualty Loss Costs
Reinsurers are likely to push for double-digit increases in U.S. casualty premium rates during the January 2025 renewals. This move aims to address higher loss costs
Global Reinsurers Brace for Mixed Reinsurance Pricing Outlook in 2025
More than 50% of the 81 respondents think global reinsurers will raise prices in January reinsurance 2025 renewals, continuing recent increases driven by high claims inflation
Reinsurers Will Increase in U.S. Casualty Premium Rates in 2025
Reinsurers will push for double-digit increases in U.S. casualty premium rates when policies come up for renewal in January 2025 to keep up with higher loss costs
Global Brokers Called on Re/Insurance Industry to Support Ukraine’s Resilience
Since the war began, global reinsurers have bundled risks from Ukraine, Russia, and Belarus, excluding them from reinsurance contracts. This has reduced available capital and hindered economic stability
Reinsurance Market Outlook for 2025: De-risking, Pricing & New Conditions
The positive reinsurance market outlook comes from de-risking as much as pricing with changes in terms and conditions, rising attachment points and tightening of wording
ILS Market & Alternative Reinsurance Capital: Poised for Continued Growth
ILS market remains a significant capital source for reinsurers in 2024. Alternative capital estemated at $110 bn, with the catastrophe bond market growing to $45 bn
2024 Global Reinsurer Traditional Capital: Capacity at Peak Levels
In 2024, global reinsurer capital, including both alternative and traditional sources, has reached peak levels. Reinsurer capital stood at $695 bn as of mid-2024, marking a $25 bn increase
Reinsurance Industry at a Crossroads: New Risks & Opportunities in 2024
While the reinsurance industry faces challenges, such as geopolitical and economic uncertainty, its biggest threat is losing relevance. 2024 has been another year of volatility
Rising Demand for Property Re/Insurance Amid Increasing Risks & Costs
Higher property values, urbanization, and increased repair costs are likely to drive demand for property re/insurance, particularly in regions facing heightened natural catastrophe
European reinsurers recorded stronger return on equity (ROE) in 2023 and 2024, exceeding their cost of equity in three of the last four years
Global re/insurers reported improved underwriting results and capital positions. These gains came alongside rising uncertainty around reserve development and expanding loss gaps
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
Europe’s four largest reinsurers—Munich Re, Swiss Re, Hannover Re, and SCOR—reported strong financial results in 2024