Guy Carpenter publishes latest global property insights
Broker Guy Carpenter has published its Mid-Year 2024 Market Insights Update.
The publication is Guy Carpenter’s estimate of additional global property catastrophe limit purchased.
Guy Carpenter said that this more detailed assessment of one of 2024’s critical market dynamics builds on its mid-year renewal commentary and further demonstrates how a transitioning reinsurance market is meeting demand in a dynamic trading environment.
According to Guy Carpenter some of the key takeaways include:
• Estimated global property catastrophe limit purchased increased $35–40 billion through the first half of 2024, with more than 50% of increased limit originating in North America across a wide range of companies.
• Capital from traditional reinsurers, calculated using the Guy Carpenter Reinsurer Composite Index, increased over $35 billion by year-end 2023 versus 2022 with retained earnings a significant contributor, providing increased capacity available to fulfil increased demand.
• Reinsurer profitability improved going into 2024, incentivising reinsurers to utilise increased levels of capital in property catastrophe.
• Risk-adjusted pricing trended down by mid-year, particularly on middle and upper layers, giving buyers greater ability to increase purchases.
• Record H1 for catastrophe bonds as investors sought opportunities to participate in improved market conditions.
• Demand is likely to remain somewhat elevated in 2025 provided pricing and capacity remain in balance.
For more information contact Guy Carpenter.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
