Global reinsurance brokerage Gallagher Re reported that property catastrophe reinsurance rates for the best-performing accounts in North America fell by 20% to 25% or more at renewal on July 1, with similar trends seen in other regions as sellers showed greater flexibility on price and structure.
Gallagher Re’s First View Renewal Report for July 2026 examines the renewal period, with conditions further shifting in favor of buyers, with cedants achieving risk-adjusted rate reductions across a number of categories and geographies.
Despite continued softness in rates at renewals in January and April 2026, Gallagher Re highlighted a “renewed focus on more creative and efficient risk transfer solutions” mid-year. The report explains how buyers can reshape their risk transfer plans and improve the resilience of their long-term portfolios as reinsurers become more nimble.
The result, according to Gallagher Re, is a return to more innovative approaches such as multi-line, multi-year and aggregate structures, which are now reportedly available at more attractive price points.
Gallagher Re’s analysis shows that dedicated reinsurance capital will be $648 billion in 2025, an increase of 11% from the previous year. However, premium growth remained at just over 1%, exacerbating the imbalance between supply and demand and leading to more intense market competition.
Meanwhile, reinsurers continue to generate strong returns, with Gallagher Re forecasting an ROE of 14% to 15% in 2026 and nearly 19% in 2025. Gallagher Re said this supports reinsurers’ continued willingness to deploy capacity, enabling cedants to implement more bespoke solutions to manage earnings volatility and optimize capital efficiency.
“Property renewal provides the clearest evidence that the program has attracted significant excess capacity, with reinsurers competing on price and terms,” the company said.
The reinsurance broker expects natural catastrophe losses in the first half of the year to June 15 to be $38 billion, below the 10-year average. This means reinsurers will enter the second half of 2026 with healthy catastrophe budgets and continued deployment capacity.
The report also highlights the continued expansion of the alternative reinsurance capital space, with non-life insurance-linked securities (ILS) capital reaching $135 billion and total catastrophe bond issuance reaching $15.6 billion as of mid-June, with the market on track to reach another record high following issuance levels reached in 2025.
Gallagher Re reported more stable mid-year renewal results in casualty reinsurance, citing continued caution about loss trends, particularly in the US, but increased adaptability to well-performing portfolios.
The report stresses that capacity remains adequate in specialty areas, but notes that recent loss activity in areas such as aerospace and cyber is driving closer scrutiny of performance.
Tom Wakefield, global chief executive of Gallagher Re, said: “The data shows the market is characterized by strong capital, healthy returns and increasing competition, all of which are improving customer outcomes.
“Importantly, it’s not just about price. The same forces enable clients to access more tailored and efficient reinsurance solutions at prices that have often been unattainable in recent years.
“The focus now is on how clients can effectively leverage these conditions to optimize their plans and build more resilient portfolios for the future.”
