Reinsurers stuck to their rate discipline at the mid-year renewals but a noticeable shift has emerged, with more willing to deploy extra capacity at the right terms and price, Gallagher Re says. 

“With the improved terms and conditions available in the reinsurance market, some existing reinsurers are leaning into the hardening market, committing more of their existing capital, as well as any new capital they are raising, to reinsurance,” Global CEO Tom Wakefield said. 

The Gallagher-owned reinsurance broker says in a market update supply and demand shows signs of coming into balance, particularly for programs that are perceived to be well-structured and appropriately priced. 

Overall the July renewal cycle was “orderly and rational,” Gallagher Re says, adding “even for more challenging renewals, capacity could be secured privately in advance at acceptable terms eliminating short fall placements”. 

Guy Carpenter in its assessment report says the reinsurance market continues to “recalibrate” at the mid-year renewals. 

The property line saw additional capacity and increased appetite while the casualty market continues to trend in a cautious direction. 

“Price adequacy across lines and supportable structures are expected to continue to drive sufficient capacity levels,” Guy Carpenter CEO and President Dean Klisura said. 

See ANALYSIS.