Global non-life reinsurance market to see improved margins

The market witnessed a dramatic increase in average retentions on property reinsurance programmes.

AM Best maintains a stable outlook for the global non-life reinsurance segment, citing factors such as improved property reinsurance margins driven by rate increases, robust investment income, and orderly renewal cycles. 

In its latest “Market Segment Outlook: Global Non-Life Reinsurance” report, counterbalancing factors include elevated catastrophic activity and adverse reserve development for casualty business. 

Despite no significant reinsurance startups being funded, underwriting margins have expanded as reinsurers realign property risk. 

ALSO READ: Property catastrophe reinsurance sees ‘strong’ appetite on higher returns

The market witnessed a dramatic increase in average retentions on property reinsurance programmes, stressing primary insurers' capital positions. 

Social inflation resumed, impacting casualty lines, whilst reinsurance capital rebounded significantly in 2023. 

Despite favourable conditions for new entrants, no significant reinsurer startups have been funded, attributed to various factors including high hurdle rates and shifting investor interests towards service providers/agencies.