Reinsurance & London Market Insurance: Conditions ease, but capital still leads; an update on reinsurance

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Reinsurance & London Market Insurance: Conditions ease, but capital still leads; an update on reinsurance

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Reinsurance & London Market Insurance

Conditions ease, but capital still leads; an

update on reinsurance

Industry Overview

Softening no longer soft-spoken; 1/6 rates down -15-25% 09 June 2026 Corrected

1/6 confirms the market has moved beyond gentle price ‘normalisation’. Property-cat Equity

pricing remains above prior-cycle lows, but the pace of decline is now meaningful Europe

enough to pressure underwriting margins. For 1/6 renewals, Howden reports risk- Insurance

adjusted Property cat rate decreases up to -25% with steeper reductions on loss-free Shanti Kang >>

programmes and faster than 1/1 and 1/4 data. Guy Carpenter data points in the same Research Analyst

direction. Florida showed 15-20% risk-adjusted reductions at 1/6, despite Property cat MLI+44 (UK)20 7995 1029

capacity up +12% y/y. This accelerates from April, where renewals showed APAC XoL shanti.kang@bofa.com

down 10-20%, India XoL down 20-30% and US Property-cat rate-on-line index down David Barma >>

Research Analyst

~14%. To us, this reveals excess supply is driving rate reductions, and we expect further BofASE (France)

softening into 1/7 renewals. david.barma@bofa.com

Nimrat Kaur >>

Property exposure is large but balanced at 49% of P&C ResearchMLI (UK) Analyst

Into Atlantic Hurricane season, we analyse reinsurers’ exposures to Property. 2025 SFCR nimratkaur@bofa.com

premiums show average 49% premium allocated towards Property within P&C books

across the four reinsurers. Swiss Re holds a marginally higher proportion following

Casualty pruning across 2025 (see Exhibit 4), but none appear overweight.

Glossary:

Peak cat load has grown, but proportionately vs capital