ICMIF Supporting Member Gallagher Re has published the latest edition of its 1st View report, offering a first look at market conditions for the April 1 reinsurance renewals. Issued three times a year, the report provides insights into trends at key renewal points: January 1, April 1 and July 1.
The April 1 renewals took place amid conditions that would typically disrupt market balance: geopolitical instability, softening primary markets, and an uncertain economic outlook. Despite this, the report finds reinsurers remained resilient and adaptable, highlighting opportunities for cedants willing to take a strategic approach to risk transfer.
The report notes that cedants achieved risk-adjusted rate reductions in property and specialty lines, while casualty pricing remained broadly stable. Reinsurers continued to engage in relationship-driven competition, and capacity remains abundant.
Key themes from the report include:
- Robust capital position: Reinsurers entered 2026 financially strong, while alternative capital continues to grow. Catastrophe bond issuance in Q1 is approaching near-record levels, and total non-life ILS assets rose 19%. Investors are increasingly exploring casualty and non-catastrophe property risks, driving market diversification.
- Geopolitical uncertainty: The Middle East conflict and ongoing economic concerns are creating demand for tailored reinsurance solutions, yet the sector has maintained capacity and competitiveness.
- Lessons from Japan: Strategic portfolio management in Japan has allowed cedants to achieve risk-adjusted reductions, particularly in property catastrophe portfolios. Disciplined underwriting improvements in casualty lines have also contributed to rate reductions for lower-volatility portfolios.
The report concludes that while softening markets may tempt some to passively benefit from falling prices, the environment offers a unique opportunity to reshape risk transfer programmes, strengthen portfolios, and secure long-term competitive advantages. Gallagher Re emphasises that achieving these outcomes requires innovative thinking and challenging traditional assumptions in reinsurance strategy.
The full report is available for ICMIF members to view here.
