Reinsurance April renewals showed modest rate increases, with inflation a key topic during every negotiation, while the conflict in Ukraine was also a focus, Gallagher Re says in a report.

“The ongoing supply-chain squeeze, the inevitable but still surprising return of inflation, and especially the challenges presented by Russia’s invasion of Ukraine were discussed at every major renewal negotiation,” Global CEO James Kent said.

“Fortunately, none of these topics prevented a basically orderly renewal from occurring, mainly in line with everyone’s expectations.”

Gallagher says buyers able to demonstrate that their own underwriting is taking into account inflationary impacts faced an easier renewal.

Loss-free property catastrophe treaty rates showed “modest single digit increases”, similar to those in the January renewals, on a risk-adjusted basis. Property per risk business showed a far wider range of increases, following the trend seen in other recent renewals, while casualty rates were flat, Gallagher says.

As conflict in Ukraine continued in the background of renewal discussions, the market standard Sanction Limitation and Exclusion Clause, LMA 3100, saw almost universal adoption.

“Coming on the heels of the unexpected and unmodelled Covid-19 losses in 2020, several reinsurers have pushed harder for greater clarity over any potentially unclear areas of coverage,” Mr Kent said.