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 Rate on line (ROL) is the ratio of premium paid to loss recoverable in reinsurance contracts, which signals how much money an insurer must pay to obtain reinsurance coverage. A high ROL indicates that the insurer must pay more for coverage, while a low ROL means an insurer pays less for that same coverage.
A swing rate is a feature in a reinsurance agreement in which ceded premium paid by the Insurance Company to the Reinsurer adjusts based on ceded ultimate losses. An initial provisional ceded premium amount is stated in the reinsurance agreement at the beginning of the contract.
Reinsurance Premium = (Loss to the Reinsurer/Cover Limit) * No of days from date of loss/365*Reinsurance Premium.
In this section, we have collected the most current articles and reviews on the topic of the Reinsurance Rate.
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 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
How GLP-1 therapies are altering medical practices and insurance structures, prompting reinsurers to adjust their strategies to align with emerging risk profiles
EU insurance markets could gain if recent proposals for a bloc-wide public-private reinsurance scheme for climate-related losses move forward
Reinsurance renewals for 2025 reflect a shift in market conditions. Property reinsurance rates have softened, though profitability remains strong
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
Marine mutual insurers and P&I Clubs are planning rate hikes for 2025, driven by rising claims and inflation pressures. Marine mutuals are under growing pressure
Changes to reinsurance-related capital requirements proposed by the Australian Prudential Regulation Authority strengthen Australian general insurers’ credit profiles
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 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
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 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
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
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
Higher property values, urbanization, and increased repair costs are likely to drive demand for property re/insurance, particularly in regions facing heightened natural catastrophe
Global reinsurance market delivered strong results in 2024 with further improvement in underwriting profitability, exceptional ROEs and a continued building of capital
Florida’s reinsurance market, after three years of significant rate hikes, saw a pause in 2024. Reinsurers viewed the outcome positively
Insurance-Linked Securities Overview. Insurers and reinsurers leveraged alternative capital in 2023 more than any year in the history of the (re)insurance market
Reinsurance renewals conditions since 1/1 have continued to move in favor of reinsurance buyers. At the start of last year, property catastrophe capacity was constrained
Global Reinsurance market conditions since 1/1 have continued to move in favor of reinsurance buyers. Reinsurance renewals at April 1 consolidated the progress made at 1/1
Global reinsurance groups reported a significant improvement in underwriting profitability and ROEs in 2023
Reinsurance rate increases for property catastrophe business are likely to slow to below 10% on average when contracts are renewed in January 2024
Global reinsurance rate increases for property catastrophe business are likely to slow to below 10% on average when contracts
Ahead of the January 2024 reinsurance renewals, reinsurers’ overall appetite for US regional property catastrophe coverage remains healthy