At its Monte Carlo breakfast briefing, Hannover Re reported that the January 1, 2026, property and casualty reinsurance treaty renewals are expected to feature stable to slightly softer pricing, alongside continued favourable terms and conditions in an attractive market environment.
With this in mind, the company stated in its briefing that it expects overall stable to slightly lower prices in its property and casualty reinsurance business for the treaty renewals on 1 January 2026.
“Terms and conditions and retentions will likely remain unchanged on a sustained adequate level. Overall, Hannover Re plans to make more reinsurance capacity available for the 1 January 2026 renewals, provided risk-adequate prices can be obtained,” it added.
Sven Althoff, Executive Board member for property and casualty reinsurance, commented, “We anticipate that reinsurance prices will remain on an adequate level. We are staying focused, writing only business that meets our profitability requirements.
“If these are not met, we are also willing to refrain from accepting business in the interests of active cycle management. On the whole, though, we continue to see good opportunities for profitable growth together with our clients.”
Breaking down the major markets for natural catastrophe business in 2026, Hannover Re said the United States continues to see strong demand for capacity, with higher retentions having supported reinsurer results, but California wildfires, Midwest tornadoes, and an active hurricane outlook are pushing rates higher despite some reductions on loss-free programmes.
Meanwhile, in Europe, recent years of heavy losses, inflation, and supply chain pressures mean risk-adequate pricing remains essential, though in the absence of large claims, prices are expected to stay stable or ease slightly.
As for Asia-Pacific, Japan’s April renewals saw modest reductions despite repeated flood, typhoon, and hail losses, while earthquake events in Myanmar and Thailand boosted demand for cover; Australia and New Zealand, spared from major climate losses recently, saw moderate July rate declines, though Hannover Re expects market stabilisation ahead.
Assuming that prices as well as terms and conditions remain adequate, the reinsurer observed that it is prepared to strategically expand its exposure to natural catastrophe covers over time.
Clemens Jungsthöfel, Chief Executive Officer of Hannover Re, said, “The insurance industry continues to face a wide range of challenges – whether from climate change-induced extreme weather events, rising claims costs or geopolitical tensions.
“Reliable reinsurance protection is especially important for our clients in such an environment. As a broadly diversified and financially strong reinsurer, we are optimally positioned and offer reliable protection even in volatile times.
“We continue to regard long-term, partnership-based business relationships as the basis for generating sustained, profitable growth shoulder-to-shoulder with our clients.”
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