Howden Re sees capital inflows boost mid-year reinsurance supply

Renewals generally saw strong demand, with most programmes achieving full subscription.

Howden Re has reported ongoing moderation in property-catastrophe reinsurance pricing at the 1 June 2025 renewals. 

The shift follows a period of historic rate increases and market dislocation. 

Risk-adjusted rate-on-line changes ranged from flat to down 20%, depending on loss history and programme structure.

Capacity returned selectively, with reinsurers maintaining underwriting discipline and focusing on core relationships.

Renewals generally saw strong demand, with most programmes achieving full subscription.

Cedents were able to negotiate more favourable terms compared to recent years. 

Despite ongoing pricing pressure, reinsurers continued to support placements across layers, including top and aggregate structures, reflecting broader market recalibration.

The mid-year renewals were characterised by an increase in capital inflows. 

New reinsurers and syndicates added capacity, whilst catastrophe bond activity remained strong.

This contributed to increased supply, particularly in remote-attaching layers, where rates declined by 10% to 20%.

Renewal placements occurred earlier than in previous years, with reinsurers showing interest in underwriting across entire programmes. 

This trend was especially apparent where cedents purchased multiple layers or products concurrently. 

Reinsurers extended support to property per-risk excess of loss placements and showed renewed interest in aggregate and multi-event covers, responding to demand for protection against higher-frequency events.