Reinsurance brokerage Howden Re, part of brokerage group Howden, reported that Australia and New Zealand (ANZ) reinsurance renewals on July 1 essentially delivered a 10% to 15% reduction in no-loss business rates as protection buyers increased vertical limit purchases.
Analysis by Howden Re shows some cedants actually received fee reductions of more than 15 per cent, as ANZ’s renewals came amid continued reinsurer profitability, ample market capacity and an “increasingly confident buyer base”.
The report said the market is now clearly turning in favor of reinsurance buyers, with cedants “emboldened” by weak dynamics during April and June renewal periods in Asia and the United States.
Howden Re said the ANZ market was certainly not immune to global reinsurance market dynamics, but it was responding to a complex and soft environment from a position of “real structural strength”. Ultimately, the market remains attractive but increasingly competitive as overseas capacity becomes active in terms of portfolio diversification and pricing that, although pricing is softening, can still generate adequate capital returns in a major catastrophe risk scenario.
“This balance, diversification value and continued rate adequacy have underpinned reinsurer interest, which remains strong even as pricing falls,” Howden Re said.
In terms of natural disasters, Howden Re said earthquakes remained a major constraint on ANZ ceding funds. The severity of the hazard continues to influence the way most local buyers structure their reinsurance programs.
Notable impacts on the lower to mid-tiers of reinsurance towers are floods and bushfires. While hail is rarely discussed in an updated context, Howden Re points out that this hazard has significant potential, citing the 1999 Sydney hailstorm as an example.
During ANZ’s 1 July 2026 reinsurance renewal period, Howden Re found a change in the role of cyclone risk. The company explained: “The removal of residential hurricane risk from the private market by the Australian Government’s hurricane reinsurance pool has significantly changed the hazard levels of many cedants. For many, hurricanes have moved from being a major hazard on par with earthquakes to now being significantly less significant. Reinsurers have fully factored this shift into their appetites and pricing, and have helped to expand support for Australian projects across the board.”
Overall, across Australia and New Zealand, catastrophe experience over the past 12 months has been benign, leading to a stable view of local risks in the reinsurance market.
Richard Pike, Head of Treaties at ANZ at Howden Re, commented: “This renewal demonstrates that ANZ continues to hold a unique position in the global reinsurance sector. Capabilities are broad, demand is competitive and cedents have the ability to meaningfully improve their programmes. The task now is to make the most of this window and build a structure that is resilient not just in a soft market but whatever comes next.”
Exploring casualty reinsurance renewals in the region, Howden Re reports that placements are “largely in line with maturities” but no new trends have emerged and are not currently dominant, with reinsurer interest aligned.
“An emerging theme is that claims for psychological and emotional trauma have increased significantly following disaster events, but not yet enough to impact pricing or structural terms. The direction of travel deserves monitoring,” the report warns.
John Philipsz, managing director and head of Howden Re Australia, said: “This is a refresh with well-prepared buyers delivering strong results with well-constructed programs, not just on price but also on structure and terms. The ANZ market continues to attract real interest from reinsurers and our ongoing conversations reflect this. Our focus remains on helping clients take advantage of current conditions with purpose, whether that means extending limits, expanding cover or establishing more durable group relationships.”
Looking ahead, the reinsurance broker said the ANZ market “enters the second half of 2026 in a relatively strong position”. Reinsurer interest is broad and capabilities are at competitive levels, with buyers now well positioned to continue to improve their risk transfer programs. Howden Re doesn’t expect the weakening global economy to abate anytime soon, but adds that local conditions that make ANZ attractive remain intact.
Andy Souter, head of Asia Pacific (APAC) at Howden Re, said: “The situation on July 1 reflects that the market has become quite mature in dealing with the weak economic cycle. Buyers are more sophisticated, projects are better structured and the conversations we are having are more strategic.
“This is true across Asia Pacific, with ANZ leading the way. Our continued investment in the region, people, relationships and analytical capabilities is a deliberate expression of our belief in its long-term value. We are building for the long term here and this update reflects that commitment.”
