Cat loss retro rates fall up to 20% at mid-year renewals for loss-free accounts: Gallagher Re

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Market conditions remained generally favourable for buyers of non-marine retrocession at the July renewals, according to reinsurance broker Gallagher Re, who highlights in its latest 1st View report, that catastrophe rates fell by up to 20% for loss free accounts.

This softening market represents a direct continuation of the buyer-friendly trends observed during both the January and April renewal cycles.

However, reinsurers continue to strictly differentiate cedants on both price and coverage. As a result, the sharpest rate reductions were once again concentrated in the more remote layers of risk.

For non-marine retrocession, risk loss-free rates renewed -5% to -10% at July 1st, while catastrophe loss-free rates decreased by -10% to -20%. Price remained the primary focus for buyers, with overall retrocession pricing broadly tracking the rate reductions seen across inwards portfolios.

In addition, Gallagher Re noted that capacity from incumbent reinsurers remained adequate across the board, as reinsurers looked to hold positions across programs. Backed by this healthy supply, buyers showed increased interest in expanding their aggregate and frequency protection at the mid-year renewals, as supply sufficiently met demand.

Furthermore, the broker noted that non-marine retrocession buyers have increasingly been turning towards the catastrophe bond market to manage probable maximum loss (PMLs) exposures.

A wave of new retrocession sponsors also ventured into the cat bond market for the first time during Q2 2026, to capitalise on favourable pricing conditions that are currently being displayed across the space.

To conclude, the broker highlighted how its Arthur Re Ltd. platform for index-trigger catastrophe bond transactions has allowed new cat bond sponsors to take advantage of maturity schedules ahead of the 2026 Atlantic hurricane season.

The broker also stressed that the platform provides a more efficient means of accessing 144A cat bond capacity.

Also read: Arthur Re adds another dimension to Gallagher Securities’ global retro offering: CEO Bolding

Read all of our reinsurance renewal news coverage.

Cat loss retro rates fall up to 20% at mid-year renewals for loss-free accounts: Gallagher Re was published by: www.Artemis.bm
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