Gallagher President and CEO J. Patrick Gallagher predicted that the buyer’s market is expected to continue this year, and while some insurance companies are satisfied with the reinsurance programs they obtained during the January 1 renewal season, others are expected to seek additional protection later in 2026.
Reinsurance broker Gallagher Re said risk-adjusted real estate catastrophe pricing fell by an average of 10% to 20% to 1.1, following a year of strong underwriting results and an apparent lull in the 2025 U.S. hurricane season.
Strong underwriting results in 2025 provide ample reinsurance capacity to support customer demand. While previous renewals were dictated by tight capacity and rising attachment points, the current environment is characterized by buyer choice and opportunity.
“Rates in the property reinsurance market are down in the teens, with policies in the lower tiers performing better than the top tiers of the reinsurance tower. Gallagher is seeing continued customer demand for more policies and increased purchases,” the executive said.
Gallagher Re’s 1st View report notes that overall property reinsurance premiums are down by mid- to high-single digits, with many buyers prioritizing “cutting prices” rather than “taking on risk.”
Some cedants have successfully struck “rational trade-offs” that ensure expanded coverage at lower prices to better manage earnings fluctuations.
Gallagher said: “Despite double-digit declines in global P&C insurance prices, P&C reinsurance premiums are down only mid- to high-single digits compared with last year.
“In specialty lines, competition from carriers has intensified in the marine and energy sectors. Pricing across lines continues to be broadly stable as most reinsurers remain very cautious on U.S.-centric casualty risks.”
Despite the real estate disaster that has caused double-digit price drops, the broker reports that most sellers still believe the market is adequately rewarding.
Gallagher concluded: “Looking ahead, we expect the buyer’s market to continue into 2026, barring any significant loss activity this year or the previous year.
“While customers are satisfied with 1.1’s reinsurance program, we believe some insurers may consider purchasing additional cover to further reduce earnings volatility or support growth throughout 2026.”
