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Reinsurance peaking, capital rising, but profitable growth opportunity persists: Fitch

February 29, 2024

The global reinsurance market pricing cycle is peaking and rising levels of both traditional and alternative capital is one driver, but still the market remains very attractive and profitable growth opportunities persist, according to Fitch Ratings.

Fitch notes that the results of the January 2024 renewals for the big four European reinsurance giants show that their margins are now close to peaking.

The reason is that “supply-and-demand dynamics” have become more balanced, the rating agency says, helped by rising capital in the insurance-linked securities (ILS) market, as well as stabilisation of overall global reinsurance capital.

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