Renewals in Vietnamese reinsurance varied: Gallagher Re

The market continued to depend on proportional treaties for capacity.

The Vietnamese reinsurance market continued to depend largely on proportional treaties for capacity. Excess of loss treaties remained relatively small, with low attachment points and limits, reported Gallagher Re amidst 1.1.25 renewals.

The market’s competitive dynamics have been maintained due to historically low natural catastrophe activity and stable treaty performance. 

However, Typhoon Yagi, which struck in September 2024, caused approximately $400m in property and engineering losses, marking the largest natural catastrophe loss recorded in the market.  

Proportional treaties were less affected by the loss, thanks to their structural features, with many projecting positive balances despite the event. 

In contrast, loss-hit excess of loss contracts faced varied pricing outcomes. 

Contracts with minor to moderate losses remained competitively priced, but significantly impacted contracts saw notable rate increases. Commissions for proportional treaties ranged between 0% and -2%.  

Despite the losses, more reinsurers were willing to quote this year, and following capacity was abundant.  

Globally, Gallagher Re reported orderly property renewals as of 1 January. Sufficient capacity supply supported favourable market dynamics, although outcomes varied significantly based on individual account circumstances.