Key Findings for the Reinsurance Market:
- The market has faced similar discipline to that seen at January 1, although with a more intense focus on pricing and contract improvements across all territories and to all business lines
- Capital remains constrained with limited signs of new capacity entering the market and existing reinsurers facing mark-to-market investment losses
- In Japan, long term reinsurer relationships, aided by improvements in primary underwriting, led to a better alignment of client and reinsurer expectation
- The supply/demand dynamic was finely balanced but overall buyers managed to secure sufficient capacity
- Similar to January 1, the Casualty treaty market remained calm and logical, though continued concern regarding US ‘nuclear’ award verdicts are increasingly coming to light on US casualty placements, including some treaties with incidental US exposures
- ILS issuance is picking up due to capital constraints in the traditional market, although at higher pricing than traditional indemnity pricing
