LONDON, Apr. 1, 2026 - Aon plc (NYSE: AON), a leading global professional services firm, today launched its Reinsurance Market Dynamics April 2026 Renewal report, which finds that reinsurance buyers purchased higher limits to support profitable growth at the April 1 renewal as global reinsurance capital reached a record $785 billion. The abundant capital environment enabled insurers to access broader protection and optimize program structures with double‑digit rate reductions, notably across key Asia Pacific markets.

Global demand for reinsurance increased by approximately 10 percent at the April 1 renewal, as buyers used favorable market conditions to secure more comprehensive protection, with some expected to return to the market post‑renewal to explore additional purchases. In certain Asia Pacific markets, rate reductions of up to 20 percent underscored the strength of buyer leverage supported by abundant capacity.

Reinsurers achieved an average return on equity (ROE) of 17 percent, marking a third consecutive year of strong underwriting and retained earnings, supported by robust investment performance. Aon forecasts that reinsurers’ ROEs will continue to exceed their cost of capital in 2026, should ceded losses remain within expected ranges, while noting that rising geopolitical tensions – including the Middle East conflict – and capital market volatility may introduce greater uncertainty across the global economy.

In key Asia Pacific markets – including Japan, Korea and India – reinsurance buyers secured double‑digit rate reductions, supported by plentiful capacity and a period of relatively benign catastrophe losses. In the U.S., competition across traditional and insurance-linked securities markets responded to increased buyer demand and led to double-digit pricing reductions. U.S. insurers also used favorable buyer conditions to transfer more risk to reinsurers through increased limits, frequency covers and proportional transactions.

For Aon’s insurer clients, the abundance of reinsurance capital resulted in significant risk-adjusted rate reductions at the April 1 renewal, extending the favorable momentum seen during the January 1 reinsurance renewal period. A sharp increase in alternative capital also expanded balance sheets and intensified competition, driving buyer leverage.

Competition was particularly strong in property lines and lower layers of reinsurance programs, as reinsurers and insurance‑linked securities investors actively deployed capacity in pursuit of growth. The favorable buying dynamics translated into improved pricing, broader coverage options and more flexible program structures, while higher commissions on proportional placements, expanded limits and extended catastrophe towers enabled insurers to enhance protection value while reducing overall program cost.

George Attard, chief strategy officer and global head of analytics for Aon’s Reinsurance Solutions, said: “Taking a proactive, strategic approach to using reinsurance capital as an enabler allows our insurer clients to embrace risk and drive profitable growth ambitions through 2026 and beyond. In this environment, reinsurance provides insurers with powerful tools to manage volatility, protect profitability and invest confidently in new lines of business, geographies and emerging risks, as well as pursuing inorganic growth opportunities – a key trend highlighted in our report. Such actions will help insurers outperform peers as the market cycle evolves.”

Steve Hofmann, Americas CEO for Aon’s Reinsurance Solutions, added: “The combination of strong capitalization and disciplined underwriting provides confidence that current pricing levels remain sustainable, allowing buyers to benefit from improved protection today without undermining longer‑term market stability.”

While core retentions were broadly stable or slightly lower, favorable market conditions allowed buyers to reassess risk appetite and optimize program design. Many insurers used the April 1 renewal to purchase retention buy‑downs and additional frequency protection, strengthening downside protection and improving earnings stability, while strong capacity also enabled insurers to increase limits and better align reinsurance programs with growth ambitions.

Looking ahead, pressure on rate reductions in primary pricing is expected to increase over the next 12–18 months, placing greater emphasis on capital efficiency and disciplined growth.

Alfonso Valera, International CEO for Aon’s Reinsurance Solutions, said: “As volatility increases and primary market competition intensifies, insurers are increasingly using reinsurance as a strategic tool rather than a purely transactional purchase. Buyers are exploring a broader mix of solutions – including facultative reinsurance, portfolio facilities, proportional covers and multi‑year arrangements – to smooth earnings, lower cost of capital and support long‑term planning.”

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

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon’s newsroom and sign up for news alerts here.

Media Contact

Andrew Wragg

+44 (0) 7595 217168

andrew.wragg@aon.com