In a recent update, ICMIF Supporting Member Guy Carpenter said it believes the reinsurance market to be characterised by reinsurers’ strong profitability in 2024 and growing capitalisation, which the global risk and reinsurance specialist expects to continue into 2025.
Examining the current data on the reinsurance market’s capital positions, Guy Carpenter and another of ICMIF’s Supporting Members AM Best say they jointly project a 9% increase in dedicated reinsurance capital, rising to USD 620 billion in 2024. Catastrophe bonds had a record first half of the year, with Q2 being the most active quarter recorded to date. By 30 June 2024, 51 different catastrophe bonds had been brought to the 144A market for approximately USD 12.2 billion in limit placed, taking the total outstanding notional amount to more than USD 45.2 billion.
“The market has ample capacity and reinsurers are motivated to engage with cedents,” said Dean Klisura, President & CEO, Guy Carpenter. “Our clients are seeking to differentiate themselves in this marketplace and leverage key strategic trading relationships.”
Sharing their views at a virtual media briefing, Dynamic trading environment meeting reinsurance demand, ahead of the Monte Carlo Rendez-Vous, Guy Carpenter’s business leaders addressed the market outlook for the January 1, 2025 reinsurance renewals.
David Priebe, Chairman, Guy Carpenter, noted that risk appetites continued to improve through the first half of 2024, with underwriting discipline remaining. Building on mid-year momentum, “this current trading cycle is marked by engaged stakeholders actively coming to the table to provide critical capital and financial support to the economy,” he said.
In discussing the property and casualty reinsurance market outlook, Guy Carpenter’s executives noted that after a historic reset in property pricing, programme retentions, and coverage in 2023, 2024 has been characterised by a more orderly trading environment, which is expected to continue in 2025, subject to no major natural catastrophe loss activity for the balance of the year. Casualty renewal negotiations are expected to continue to focus on underlying rate environment and portfolio performance. Programmes are expected to complete with adequate capacity but with continued scrutiny across sublines.
Global Specialties 2024 Market Update
Published during the September Rendez-Vous, the Guy Carpenter Global Specialties 2024 Market Update provides a unique data-driven perspective on developments across the Non-Marine, Terrorism, Marine and Energy, Construction & Engineering, Aviation & Aerospace and Trade Credit, Bond and Political Risk sectors. Read more from the Key Findings Report here.
For the full briefing recap and additional insights from Guy Carpenter’s virtual media briefing plus more articles released during the September Rendez-Vous, please visit Guy Carpenter’s Renewal Resource Center.
