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Cat rates drop up to 20% for loss free non-marine retrocession renewals

Gallagher Re said non-marine retrocession risk loss-free rates renewed at minus 5% to minus 10%, while catastrophe loss-free rates fell minus 10% to minus 20% at the July renewals.

Reported · Written up by our desk · Reinsurance

Reinsurance broker Gallagher Re said catastrophe rates in non-marine retrocession softened at the July renewal, with declines of up to 20% for loss-free accounts, according to its latest 1st View report.

The broker said the market remains broadly buyer-friendly compared with earlier January and April renewal cycles, but reinsurers continue to differentiate cedants on both price and coverage.

Gallagher Re added that the sharpest reductions were concentrated in more remote risk layers, with non-marine retrocession risk loss-free rates renewing at minus 5% to minus 10% and catastrophe loss-free rates decreasing by minus 10% to minus 20%.

It also said retrocession pricing has broadly tracked rate changes seen across inwards portfolios, incumbent reinsurer capacity has stayed adequate, and buyers have shown more interest in expanding aggregate and frequency protection. Gallagher Re noted that some retrocession buyers increasingly use the catastrophe bond market to manage probable maximum loss exposures, and that new retrocession sponsors entered cat bonds for the first time in Q2 2026 to take advantage of favorable pricing.

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