Across the 1 June and 1 July 2026 reinsurance renewals, insurers achieved double-digit pricing reductions and improved terms and conditions on their property catastrophe reinsurance placements. Global reinsurance demand increased by more than 10%, driven by expanded reinsurer product offerings and stronger appetite from US insurers to purchase additional protection at the top of programs.
“A stable, well-capitalized and competitive reinsurance market provides insurers with an opportunity to align capital more closely with their risk strategies while using analytics and insight to support long-term growth,” said Aon's Chief Strategy Officer, Reinsurance, George Attar.
The report reveals that global reinsurance capital reached a record $790bn as of March 31, 2026, largely driven by continued growth in alternative capital. Capacity was plentiful and more than adequate to meet increased demand, particularly in the US, while insurers in Latin America and Australia/New Zealand also benefited from fewer constraints and ample capacity for placements.
The midyear renewals also demonstrated a continued shift towards more customized and creative reinsurance solutions. Investments in data quality, analytics and AI are helping expand capacity, strengthen reinsurer confidence and support better outcomes for insurers. Reinsurers were also more open to flexible structures and expanded products, including aggregate covers and earnings protection, said Aon.
Aon’s renewals report highlights that reinsurers’ underwriting results have remained strong, with an average first quarter return on equity of 14.1%, well above the average cost of equity. With a strong El Niño weather pattern expected to suppress Atlantic hurricane activity in 2026, most reinsurers are well placed to comfortably exceed their cost of capital this year.
“As the industry navigates geopolitical uncertainty, evolving exposures and shifting market cycles, insurers will need to remain agile as they assess emerging risks and opportunities across regions and lines of business,” said Aon's International CEO, Reinsurance, Alfonso Valera. “The ability to adapt to changing conditions while maintaining strategic focus will be increasingly important in the years ahead.”
The report notes that market dynamics are driving increased focus on cycle management, innovation and M&A as insurers maintain core retentions while exploring buy-downs and frequency covers.
The ongoing conflict in the Middle East had no direct effect on mid-year reinsurance renewals; however, specialty coverages including marine, war, terrorism and political violence remain directly exposed to geopolitical developments, with any changes to reinsurance terms and conditions more likely to emerge at January renewals when the impact is better understood and the majority of subject treaties renew.
If loss activity remains within expectations through the remainder of the year, Aon expects reinsurers to provide greater flexibility in structures, coverage and retentions heading into 2027. For insurers, better data, analytics and AI-enabled insight are creating new opportunities for more efficient, customized solutions and help organizations make better decisions across complex market cycles.