Moody’s Ratings said that an analysis of pricing information from several leading reinsurance brokers and top European reinsurers on reinsurance placements renewed on January 1, 2025 revealed a dip in pricing.

The statement comes as reinsurance broker Guy Carpenter reported that for the key US property catastrophe reinsurance segment, overall pricing was down by 6.2 per cent at the January renewals, the first decrease since the January 2017 renewal period that marked the end of the soft market for reinsurance.

The Moody’s report said: “Moderate risk-adjusted pricing decreased for property coverage, though much depended on the geographic region and whether accounts were loss-impacted last year, and the overall pricing picture was mixed.

“Despite significant global insured catastrophe losses over the past couple of years, reinsurers have reported strong results, as higher attachment points for property catastrophe reinsurance improved underwriting results for reinsurers and boosted capital across the sector.

The focus now turns to the upcoming US midyear 2025 renewals.

“Because many renewing US accounts have experienced losses from Hurricanes Helene and Milton and the recent wildfires in California, we think it is likely that US property catastrophe reinsurance pricing will stabilise, supported by the potential for significant price increases for accounts that have had sizeable losses over the past year,” Moody’s reported.

Moody’s added: “Typically, between 40 per cent and 60 per cent of a global reinsurer’s portfolio is renewed on 1 January, including the substantial majority of European business.

“Several European-based global reinsurers reported premium growth for reinsurance business renewed 1 January as firms sought to deploy capital in a still-attractive pricing environment.

“Gross premiums written increased at Swiss Re (7 per cent), SCOR (9.6 per cent) and Hannover Re (7.6 per cent), while Munich Re’s premium volume was down 2.4 per cent because of underwriting actions intended to reduce business not meeting its return hurdles.

“Pricing across the portfolios of these European reinsurers was generally flat, ranging from a -2.1 per cent decrease reported by Hannover Re to a 2.8 per cent overall increase reported by Swiss Re.

“For its non-proportional business, SCOR reported the first pricing decease (-0.8 per cent) since the January 2017 renewals.