Reinsurance Market Shows No Signs of Returning to Pre-2023 Conditions, Says RenRe CEO

Speaking during RenaissanceRe’s Q1 earnings call, CEO Kevin O’Donnell emphasized that there’s currently no evidence suggesting the reinsurance market is reverting to pre-2023 rates or terms. Instead, he noted that the market is more stable and mature, with current conditions expected to persist or even strengthen.

Reinsurance Rates Stabilizing, Not Sliding

O’Donnell drew a vivid comparison, saying the market hasn’t just climbed a hill only to come back down:

“It’s not like we went up a ski slope and are going to ski back down. We’ve reached a mesa, and we’re walking across the top of it.”

In short, while some fluctuation may occur within specific lines, RenRe does not anticipate a market-wide softening.

He added that from a rate adequacy standpoint, property reinsurance is in a particularly strong position compared to past years. The market today is significantly more “normal” and less volatile than it was prior to 2023, he explained.

Demand for Catastrophe Cover Rising

Turning to expectations for the mid-year renewal season, O’Donnell stated that net new demand for property catastrophe reinsurance could now exceed $10 billion—higher than RenRe's earlier estimates. Most of this demand is expected to come at the top layers of programs, indicating a strong appetite for high-level protection.

He linked this rising demand to ongoing instability in global financial markets, which continues to drive interest in risk protection and maintain firm pricing.

Strategic Growth, But Cautious Deployment

While RenaissanceRe has set aside additional capital for growth, O’Donnell stressed that the company will allocate it selectively, evaluating opportunities deal by deal to ensure portfolio efficiency and margin strength.

Positive Outlook from Underwriting Team

RenRe’s Chief Underwriting Officer, David Marra, also weighed in, stating that the market conditions for mid-2025 are “more balanced” compared to the January 1st renewals. He noted:

“We’re seeing better trading conditions. The supply-demand dynamic is healthier, and rates and retentions remain some of the most attractive we’ve seen.”

The company remains bullish on property catastrophe reinsurance, planning to deploy more capacity during the mid-year, particularly where margins justify the move. He also highlighted improving dynamics in Florida, where increased demand—partly due to the depopulation of Citizens Property Insurance and changes to the Florida Hurricane Cat Fund—is creating new opportunities.

Wildfire Risk: Ready and Responsive

Following significant wildfire losses in California earlier this year, RenRe has updated its internal risk models and is now confidently quoting deals that include wildfire exposure. According to Marra:

“We’ve improved our models faster than others in the market and are prepared to write large lines with confidence.”

Final Thoughts

RenRe’s leadership continues to signal confidence in the current pricing environment and sees further growth potential, especially in property cat reinsurance. With a strategic, margin-focused approach, the company is positioning itself to meet rising demand without compromising underwriting discipline.