The 1 July 2026 reinsurance renewal across Australia and New Zealand concluded amid strong reinsurer profitability and ample capacity. Cedents secured rate reductions of 10% to 15% on loss-free programmes, with some achieving deeper cuts, while increased purchases of vertical limit highlighted improved buyer leverage.

Howden Re says the ANZ market continues to benefit from structural advantages that sustain reinsurer appetite despite easing prices. Overseas capacity remains active, attracted by diversification benefits and returns that remain adequate relative to catastrophe exposure. Consolidation in areas such as motor clubs has further sharpened focus on Australian risks.

Earthquake remains the dominant driver of reinsurance limits, shaping programme structures. Flood and bushfire risks continue to influence lower and mid layers, while hail exposure remains material. Cyclone risk has reduced in importance following the Australian government’s cyclone reinsurance pool, which has lowered private market exposure and contributed to broader reinsurer support.

Recent catastrophe experience has been relatively benign, supporting stable risk perceptions. Casualty renewals largely completed in line with prior terms, though a gradual rise in psychological and emotional trauma claims linked to catastrophe events is emerging. Proportional treaties on stronger portfolios saw pressure for improved cession commissions, while some property programmes benefited from increased or removed event limits.

Richard Pike, head of treaty ANZ at Howden Re, said: “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.”

The outlook for the second half of 2026 remains favourable, with capacity expected to stay abundant and competitively priced. The focus for cedents will be on ensuring current programme improvements remain resilient as the risk environment evolves.

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