Despite an extended period of elevated natural catastrophe losses and ongoing geopolitical and macroeconomic uncertainty, the global reinsurance sector remains resilient and profitable, as Guy Carpenter, a leading global risk and reinsurance specialist and a business of Marsh McLennan said in its press release.

As the industry prepares for the Rendez-Vous de Septembre in Monte Carlo, strong reinsurer earnings, expanding capital, plentiful capacity, and a shift toward more sustainable risk-taking continue to define the market. This sets the stage for cedents to approach the 2026 renewal period with opportunities to secure tailored, high-quality coverage.

According to the press release, dedicated reinsurance capital is projected to reach approximately USD 650 billion by year-end 2025. With supply outpacing demand, increased competition is driving reinsurers to look for profitable ways to deploy excess capital. Despite an average of USD 130 billion in annual insured natural catastrophe losses from 2021 to 2024, reinsurer profitability remains solid. Guy Carpenter estimates reinsurers could absorb up to USD 80 billion in catastrophe-related losses before meaningfully impacting capital positions.

“The reinsurance market is strong, seen in record levels of capital and reinsurer returns. Reinsurers’ appetite for growth creates an opportunity for innovative solutions that help cedents manage in a volatile world and protect against the increasingly complex range of risks they face”, commented Dean Klisura, President & CEO, Guy Carpenter. “At Guy Carpenter, we are working closely with our clients to promote their unique strengths and advocate for tailored solutions”, the President & CEO added.