Read Howden’s 2026 renewals report Re-balancing for an outlook on the reinsurance market
Howden Re is pleased to share Howden’s 2026 renewals report, Re-balancing. Most areas of the market recorded price decreases at the 1 January 2026 reinsurance renewals, bringing pricing back to levels last seen four years ago, albeit with comparatively higher attachments and tighter terms.
However, 2025 marked another strong year for the reinsurance market, and across the value chain, with returns recovering after significant losses from the Los Angeles wildfires in January, one of the largest (re)insured losses on record. Buyers benefitted from ample supply and intense competition, creating opportunities for cedents to secure broader coverage at discounted pricing.
Tim Ronda, CEO of Howden Re, commented: “Healthy supply dynamics and increased competition, particularly in property-catastrophe, created a genuine re-balancing of the market at this renewal. This, in turn, created meaningful opportunities for Howden Re clients in securing broader coverage, improved structures and attractive pricing, even as risk remained structurally elevated. Howden Re’s role at this renewal was to help clients navigate a more competitive, but still disciplined environment. The best outcomes were achieved through working with markets and capital providers to execute holistic, data-led programme solutions that balanced pricing, structure and risk transfer across portfolios.”
David Flandro, Head of Industry Analysis and Strategic Advisory, Howden Re, added: “The 1 January 2026 renewal confirms that pricing momentum has turned decisively, with risk-adjusted reductions across most major lines bringing rates back towards levels last seen around four years ago. The shift has been driven by strong retained earnings and record ILS issuance, increasing capacity and competitive tension. This is not a return to the underwriting practices of the last soft market. Attachments remain elevated by historical standards, terms and conditions are tighter; capital is being deployed selectively. The result is a market that is softening but still rational – one that continues to price volatility appropriately and create economic value for investors.”
Looking to the year ahead, conditions are expected to persist in the absence of major macro or sector-specific events, supported by strong capitalization and carriers’ continued focus on defending market share. The market nevertheless remains sensitive to losses, financial volatility and changing economic dynamics, underscoring the fragility of conditions to adverse developments.
This backdrop brings opportunities across the value chain. Buyers are benefitting from rate reductions and improved terms as supply exceeds demand in most areas whilst underwriting performance remains strong, delivering healthy profits and returns on capital.
The message coming from our analysis of (re)insurance markets is clear: this is a rare moment where everyone stands to benefit. We're in the midst of a softening market where prices are falling despite elevated political and economic volatility. By doing more to harness data, anticipate future risks, and innovate to respond to the needs of clients, (re)insurers can stay ahead of the curve and continue to be profitable. This will mean that clients will have even greater choice in the market to better protect themselves from unexpected shocks – whether political, cyber-related, litigation-driven or property based. So 2026 will be a year of enormous possibilities. It's up to both businesses and (re)insurers to take advantage.