The Reinsurance Market Dynamics Midyear 2025 Renewal report from Aon plc says it remains a buyers’ market for reinsurance, as capacity outstrips demand. That said, they also warn that insurers are seeing a variety of renewal outcomes in June and July.
“The report reveals that despite an active first half for natural catastrophe losses, midyear renewals experienced a broadly competitive environment,” Aon states in its announcement about the publication of the report. “However, while pricing continued to moderate overall, there was significant variation in renewal outcomes as reinsurers differentiated their support for insurer programs by loss experience and performance.”
The report, focused largely on the United States, Latin America, Australia and New Zealand, adds that all things being equal, reinsurance market conditions are likely to remain favourable for the foreseeable future. “Most of the major reinsurers remain on course to deliver good results in 2025,” they add. Aon estimates that global reinsurer capital grew $5-billion to $720-billion in the first quarter of 2025, despite the California wildfires. (All figures in U.S. dollars.)
“The main driver continues to be the retained earnings of established reinsurers,” they write. “Aon estimates that equity reported by global reinsurers rose by $5-billion to $605-billion in the first quarter of 2025, continuing the recovery seen since 2022.”
