Buyers are securing broader protection and more flexible terms ahead of January renewals.
Global reinsurance capital reached a record $800b as of 30 June 2026, driven by an expansion in risk transfer capacity across multiple lines.
According to Aon’s Snapshot Guide to the Reinsurance Renewal, the overall capital total includes a record $144.5b in alternative capital.
Heightened competition amongst capital providers has led to lower prices, broader coverage, and more flexible terms for buyers ahead of the upcoming January renewal period.
In property insurance, buyer-friendly conditions continued to improve through 2026, marked by double-digit price reductions and increased flexibility in terms and conditions across most placements.
US risks saw particularly strong conditions, though most regions benefited from ample capacity.
In casualty insurance, conditions remained stable with gradual improvements in terms and conditions throughout 2026, supported by strong reinsurer appetite and increased participation from third-party capital.
Despite the growing competition, traditional reinsurers remain on track for a fourth consecutive year of strong earnings.
This performance has been supported by profitable property and casualty underwriting, lower ceded losses, and strong investment income.
Global insured catastrophe losses in the first half of 2026 were the lowest for that period since 2019.
Across 19 global reinsurers, the average combined ratio improved to 85.4% in the first half of 2026, down from 94.8% in the same period in 2025.
Annualised ordinary investment returns averaged 4%, with reinvestment rates continuing above book yields.
Return on equity across 31 global reinsurers averaged an annualised 15.5%, remaining well above the cost of equity.
Aon identified three core priorities for insurers entering the January renewals: using capital more creatively to support growth, aligning risk strategies directly with capital and products, and using data analytics to accelerate strategic decision-making.
These priorities come as insurers manage rising loss volatility and growing risk exposures across casualty catastrophes, artificial intelligence, cyber threats, data centres, supply chains, and extreme weather events.