Guy Carpenter reports rate on line decreases in three regions

Guy Carpenter & Co. LLC said Thursday that its rate on line indices declined through July 1 in three major regions.

Including placements through July 1, the reinsurance broker’s ROL index for global placements decreased 8.1%.

The ROL declined 6.7% for U.S. placements and 15.9% for APAC.

Rate on line is the cost of reinsurance per dollar of limit. Each Guy Carpenter ROL index is a measure of the change in dollars paid for coverage year on year on a consistent-program base.

Strong reinsurer balance sheets together with excess property capacity and moderating pricing drove the reductions. Guy Carpenter said.

Despite loss activity in the first quarter, strong reinsurer performance is expected to continue in 2025.

Reinsurer returns on equity were 16% in 2024 and are projected to be 15% in 2025. Reinsurance capital closed 2024 at an all-time high of $607 billion. Guy Carpenter expects that trend to continue with capital growth of 5% to 7% by year-end 2025.

“The current trading environment is one of the most favorable for reinsurers in many years,” Guy Carpenter President and CEO Dean Klisura said in a statement. “More capacity will continue to moderate pricing.”