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Howden Re’s outlook at 1.4.25
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Howden Re has observed a moderation in Japanese property-catastrophe reinsurance market pricing at 1 April 2025. There were 10-15% risk-adjusted reductions on catastrophe excess-of-loss programmes, whilst global specialty and direct and facultative reinsurance placements varied by class.
Key highlights of 1.4:
- Japan risk-adjusted catastrophe excess-of-loss rates-on-line experienced reductions of 10-15%.
- Specialty renewal outcomes were varied:
- Aviation reinsurance rates-on-line were flat, signalling price stability compared to the 3.5% year-on-year reduction observed at 1 January.
- Marine and energy losses in 2024 were well spread with no major impact on programmes.
- Terrorism reinsurance rates-on-line reduced modestly as direct market conditions softened.
- Direct and facultative treaty markets showed further softening although reinsurers displayed greater discipline whilst capacity deployment was focused across towers despite recent loss activity.
Japan remains an attractive market for reinsurers due to its high volume, relatively uncorrelated risk and deep pool of underwriting expertise backed by experience and exposure data.
“This renewal is, on balance, a welcome reprieve for buyers in Japan and throughout Asia-Pacific on the back of an extended period of significant rate increases,” noted Andy Souter, Head of Asia Pacific, Howden Re International. “With the recent easing in pricing and stable renewals, it’s a good time for cedents to secure more favourable terms and address specific risk concerns.”