Reinsurers are entering the January 2027 renewal season with record capital levels and strong profitability, creating favourable conditions for buyers. Gallagher Re said dedicated reinsurance capital reached a new high of $688bn at the end of the first half of 2026, while non-life alternative capital rose 9% to $147bn.
The organisation also recorded a 19.9% return on equity in the first six months of the year.
Gallagher Re said the key challenge for the market is no longer capital availability, but its deployment, as supply continues to outpace demand. Gallagher Re Global CEO Tom Wakefield said, “The defining feature of today's market is not rate reduction. Instead, it's the sheer amount of capital and choice now available to buyers, and the growing gap between those who are fully taking advantage of it and those who are not.” He added that leading cedants are using the market to rethink programme structures, retentions, limits and sources of capital.
The broker added that insurers now have access to a broader range of risk-transfer solutions, including traditional reinsurance, catastrophe bonds, sidecars, collateralised reinsurance vehicles and structured solutions. Gallagher Re President Andrew Newman said, “The market conversation has moved from access to capital to optimisation of capital,” while Gallagher Re Head of Global Clients Will Thompson added that pricing remains important but “the most significant developments” are taking place around programme structure and how risk is financed.
In property, Gallagher Re said abundant capacity and intense competition are creating favourable conditions, with aggregate protection also becoming increasingly available.
Gallagher Re Global Head of Property Keith Lippmann said property buyers are operating from “the strongest negotiating position in more than a decade”, but cautioned that rate reductions should not be the sole objective. “Rate reductions are the fuel, not the finish line,” he said.
Gallagher Re expects strong competition among reinsurers at the January renewal as carriers seek to deploy capital across more products, geographies and client segments, while interest in structured solutions and longer-tail lines is expected to remain strong.