Prices and conditions to remain on a sustained stable level, says Hannover Re

Large European reinsurer Hannover Re is seeing robust demand for “high-quality” reinsurance protection and is well placed for profitable growth ahead of the January 1st, 2025, reinsurance renewals.

This morning, Hannover Re discussed current reinsurance market conditions and the outlook for the January 2025 renewals at the annual meeting of the reinsurance industry in Monte Carlo.

Ultimately, the firm expects both prices and conditions to remain on a sustained stable level for treaty renewals in P&C at 1.1 2025, and anticipates a balance of supply and demand in the majority of markets.

Throughout last year, the firm capitalised on growth opportunities, expanding its portfolio with existing clients and writing new business.

The firm believes that following the strong increases seen in previous years, which caused some primary markets to witness modest price reductions, it’s appropriate to place a particular emphasis on non-proportional reinsurance covers.

“We want to grow with our clients and continue to offer them the best possible coverage and capacity. To do this, rate levels must remain adequate,” said Jean-Jacques Henchoz, Chief Executive Officer of Hannover Re. “Insured losses are still trending higher. In view of the various challenges facing the industry, reliable reinsurance protection is indispensable. In line with our strategy, we remain well positioned for profitable growth and a preferred business partner with our clear focus on reinsurance, our excellent underwriting expertise and our very strong capital base.”

During this morning’s Hannover Re RVS event, the CEO highlighted secondary perils, noting the permanence of these risks and the challenges. Geopolitical risks and casualty issues were also discussed, as was cyber risks and the need for action here, while climate change remains a key focus for Hannover Re.

“While there is still a need for action on cyber risks, climate change is and will remain one of the greatest challenges of our time. Recent floods and heatwaves have once again highlighted the continued dramatic proliferation of extreme weather events. This is a strain on the economy and is increasingly putting insurers to the test,” said Sven Althoff, member of Hannover Re’s Executive Board.

“At the same time, the protection gap is widening as losses rise, especially in emerging countries. This is where innovative concepts such as parametric covers can help to cover climate-related risks and offer more insurance protection,” he added.

Hannover Re is optimistic ahead of the January 2025 reinsurance renewals as the firm sees strong demand for protection in a stable, more balanced environment.

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