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Reinsurance broker Howden Re, part of broking group Howden, reports that rate reductions of 10% to 15% on loss-free business were broadly achieved at the July 1 reinsurance renewal in Australia and New Zealand (ANZ), as buyers of protection increased their vertical limit purchases.
Howden Re’s analysis reveals that some cedents actually secured larger rate reductions than 15%, as the renewal in ANZ completed amid sustained reinsurer profitability, ample capacity in the market, and an “increasingly assertive buyer community.”
The report claims that the market has now clearly shifted in favour of buyers of reinsurance, with cedents “emboldened” by the softening dynamics witnessed across Asia and the US at both the April and June renewals.
The ANZ market, according to Howden Re, is certainly not immune to global reinsurance market dynamics, but it is navigating the complex and softening environment from a position of “genuine structural advantage.” Ultimately, the market remains attractive but is increasingly competitive, as overseas capacity has become active amid portfolio diversification and pricing, which although is softening, still generates adequate returns on capital against a meaningful catastrophe risk profile.
“That balance, diversification value alongside continued rate adequacy, underpins a reinsurer appetite that remains broad even as pricing falls,” says Howden Re.
In terms of natural hazards, Howden Re states that earthquake remains the dominant limit-driver for ANZ cedents. The peril’s severity potential continues to shape how most local buyers construct their reinsurance programmes.
Significant influences on the lower to mid layers of the reinsurance tower are flood and bushfire. While hail is less frequently discussed in a renewal context, Howden Re notes that the peril carries material potential, citing the 1999 Sydney hailstorm.
During the July 1 2026 reinsurance renewal in ANZ, Howden Re finds that the role of cyclone risk has changed. “The Australian government’s cyclone reinsurance pool, which removes residential cyclone exposure from the private market, has meaningfully altered the peril hierarchy for a number of cedents. For many, cyclone has moved from a primary peril of comparable weight to earthquake, to one that is now demonstrably less material. Reinsurers have fully incorporated this shift into their appetite and pricing, and it has contributed to the overall broadening of support for Australian programmes,” explained the firm.
Overall, across the ANZ region, catastrophe experience has been benign over the past 12 months, which has led the reinsurance market to have a stable view of local risk.
Richard Pike, Head of Treaty, ANZ, Howden Re, commented, “What this renewal demonstrates is that ANZ continues to occupy a distinctive position in the global reinsurance landscape. Capacity is broad, appetite is competitive, and cedents have the leverage to improve their programmes meaningfully. The task now is to use that window well, building structures that will be resilient not just in a soft market, but through whatever comes next.”
Exploring the casualty reinsurance renewal in the region, Howden Re reports that placements “completed largely in line with expiry,” while no new trends emerged and no now exposures dominated, with consistent reinsurer appetite.
“One emerging theme, not yet significant enough to influence pricing or structural terms, is a discernible increase in psychological and emotional trauma claims following catastrophe events. The direction of travel bears monitoring,” warns the report.
John Philipsz, Managing Director, Head of Howden Re Australia, said, “This has been a renewal in which prepared buyers with well-constructed programmes have achieved strong outcomes, not just on price, but on structure and terms. The ANZ market continues to command genuine reinsurer attention, and the conversations we are having reflect that. Our focus remains on helping clients use current conditions purposefully, whether that means expanding limit, broadening coverage, or building more durable panel relationships.”
Looking ahead, the reinsurance broker says that the ANZ market “enters the second half of 2026 in a position of relative strength.” Appetite among reinsurers is broad, and capacity is available at competitive levels, while buyers now have the leverage to continue improving their risk transfer programmes. Howden Re does not expect the global softening trend to abate anytime soon, but adds that the local conditions that make ANZ attractive remain intact.
Andy Souter, Head of Asia Pacific (APAC), Howden Re, said, “The conditions at 1 July reflect a market that has matured considerably in how it engages with the softening cycle. Buyers are more sophisticated, programmes are better constructed, and the conversations we are having are more strategic.
“That is true across APAC, and ANZ is at the forefront of it. Our continued investment in the region, in people, in relationships and in analytical capability, is a deliberate expression of our conviction in its long-term value. We are building for the long term here, and this renewal is a reflection of that commitment.”
The post Rate reductions of up to 15% on loss-free business at Australia and New Zealand July 1 renewals: Howden Re appeared first on ReinsuranceNe.ws.
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