Global professional services firm, Aon plc is publishing its latest report in the firm’s Reinsurance Market Dynamics series – early analysis which suggests that global reinsurers posted an average combined ratio around 90 per cent and an average return on equity of around 18 per cent. This is despite the fact that global natural catastrophe insured losses totalled $118-billion in 2023. (All figures in U.S. dollars.)

“Many reinsurers performed strongly due to elevated reinsurance pricing and higher cedent retentions,” they write.

An appetite for catastrophe risk 

Aon’s George Attard, CEO of the firm’s Asia Pacific reinsurance solutions says “the April 1st reinsurance renewals were more predictable and generally favourable to reinsurance buyers. As mid-year renewals get underway for the catastrophe-exposed markets of Florida, Australia and New Zealand, reinsurers are indicating a strong appetite for catastrophe risk,” he adds. “We would expect the positive trend of the January and April renewals to continue at mid-year renewals, with adequate capacity for property casualty risks and enhanced pricing competition. Insurers looking to purchase additional limit will also find adequate capacity to meet their needs.” 

They add that January 1st renewals continued to favour reinsurance buyers with a “dramatic shift” towards ample property catastrophe reinsurance capacity, driven by the attractive risk-adjusted returns reinsurers have enjoyed in the past 12 months. The report further reveals that global reinsurance capital is now close to peak levels recorded in 2021, resulting from strong results and a 2023 recovery in asset values.