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Hannover Re expects slower property catastrophe price declines for 2027

Hannover Re said its in-force book rose 12.3% at mid-year renewals even as risk-adjusted rates on renewed business fell 4.5%.

Reported · Written up by our desk · Reinsurance

Hannover Re said it is comfortable growing in the current property and casualty reinsurance market, even as pricing declines and margins soften. Speaking to analysts, Sven Althoff, Member of the Executive Board for Property and Casualty, said the company expects property catastrophe price reductions to decelerate heading into the January 1, 2027 renewals.

The reinsurer pointed to its first-half performance, saying its in-force book grew by 12.3% at the mid-year renewals despite rates on renewed business falling by 4.5% on an inflation and risk-adjusted basis. Year-to-date 2026 renewals growth was 7.2%, alongside an overall risk-adjusted price change of -3.9%.

Althoff said most of the growth has come from renewed business that Hannover Re knows well, which supports confidence in its pricing. While he acknowledged that pricing levels are less attractive than last year, he said the lines still meet the company’s hurdle rates and remain value accretive in a softening environment.

He also noted that softening is not uniform across the portfolio. Hannover Re said new demand has included cyber non-proportional business, and it highlighted that credit and surety, including more prominent surety products in some emerging country environments, are not subject to the same level of pricing pressure as nat cat.

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