CHICAGO, Dec. 30, 2024 - Aon plc (NYSE: AON), a leading global professional services firm, today announced the launch date of its Reinsurance Market Dynamics January 2025 Renewal report, which reviews the January 1 reinsurance renewal period and evolving trends in the sector.  

The report, to be released on January 6, 2025, will reveal that reinsurers showed greater flexibility at the January 1 renewals, as the expansion of available capacity after another year of strong results was more than sufficient to meet continued growth in global demand.

Aon estimates that global reinsurer capital rose to a new high of $715B at September 30, 2024, an increase of $45B compared to the end of 2023, with growth driven mainly by retained earnings. Capacity has been further bolstered by an easing of conditions in the retrocession market.

In the Property sector, cedants with loss-free programs were able to secure catastrophe coverage on incrementally improved terms. Reinsurers’ desire to grow created opportunities for buyers to align coverage and purchase additional protection.

Following Hurricanes Milton and Helene, insured losses from global natural catastrophe events are expected to exceed $140B in 2024. Renewal impacts were largely confined to the most affected local markets, notably Canada, Central and Eastern Europe and the United Arab Emirates.

Casualty renewals were broadly stable overall, even in the U.S., where robust underlying insurance pricing helped to offset reinsurer concerns around adverse claims and litigation trends. Individual cedant outcomes varied, depending on loss experience, business mix and data quality.

Most reinsurers continue to view Specialty business as a source of diversifying growth. January renewal outcomes varied, depending on class of business and loss activity, but pricing was generally stable to slightly lower, with a modest easing of other terms and conditions in some areas.

Alfonso Valera, co-CEO EMEA at Aon’s Reinsurance Solutions, said: “We observed an increased level of appetite in high margin lines of business and regions at the January 1 renewals, driven by reinsurers that desired improved signings across a broad swath of insurer clients. Many reinsurers need to revisit how they articulate and deliver value to clients in a sustainable, profitable manner, as now is the time to unleash financial and intellectual capital to help insurers grow profitably and expand their offerings to sustain a healthy market.”

Tomas Novotny, co-CEO EMEA at Aon’s Reinsurance Solutions, said: “During the January renewal season, reinsurers demonstrated strong appetite for writing business in this current hard market, and most renewals resulted in meaningful over-subscriptions. Reinsurers are clearly trying to maximize the scale of the business written with great return-on-equity potential, and the most successful are those that are able to meet clients’ needs holistically, across their portfolios and across the board on their catastrophe programs. The market’s willingness to deploy its capacity in support of currently unmet need will define the sector’s long-term relevance, and we should all remember that reinsurance is not just a transaction; it’s about partnering with insurers and helping them grow, with Aon here to drive that process and shape better business decisions for all parties.”

For information about Aon’s Reinsurance Solutions: https://www.aon.com/en/capabilities/reinsurance 

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