Global reinsurance prices continued to decline during July 2025 renewals
Reinsurance prices continued to decline during June and July 2025 renewals, confirming Fitch Ratings’ forecast that increased supply and competition are increasing pressure on rates after the 2024 peak.
Most reinsurance lines are showing a gradual rate decline, which was also observed in January and April. Property and casualty insurance programs fell by 10-15%.
- US liability insurance prices remained stable.
- Retrocession conditions improved.
- Specialty lines show mixed trends
- Cyber reinsurance prices continue to fall
- Aviation reinsurance remains stable.
The financial impact of rate cuts from mid-2024 is becoming more visible. Underwriting profitability is narrowing due to continued pressure on rates and rising losses, especially after natural disasters such as the Los Angeles wildfires in the first half of 2025.
Despite this, rates remain higher than historical averages. Investment income remains a significant source of income, experts say.
The level of reserves in the sector is sufficient, allowing it to use positive trends in reserve formation to stabilize results. At the same time, the risk of negative reserve revisions in some liability lines may increase due to the long-term impact of social inflation.
The global reinsurance market shows excess supply, which is growing faster than demand from policyholders, which shifts the balance of prices in their favor, especially in property reinsurance.
According to Fitch, the situation in the liability segment remains more balanced and competition is mostly around price rather than reinsurance contract structure.
Nevertheless, property reinsurance revenues are growing due to increased risk awareness among customers and increased insured amounts. Interest in liability reinsurance in the US remains mixed, with some companies increasing their participation and others exiting the market, Fitch Ratings analysts say.
Contract terms are gradually softening and reinsurers are increasingly willing to cover lower tiers of programs, reduce limits and agree to shorter reinsurance periods.
Demand for aggregate and coverage is returning to the reinsurance market. This process is taking place slowly, but is being stimulated by increasing competition and a gradual weakening of underwriting discipline.