In a recent interview with our sister publication Reinsurance News, James Vickers, Chairman of International at reinsurance broker Gallagher Re, told us that reinsurers are well positioned for the year ahead after the key January 1st renewals. 

This interview featured Gallagher Re’s Vickers, who discussed the 1.1 renewals and how this positions reinsurers for future renewals and the year ahead across property and casualty markets. He also discussed ILS market conditions and the recent devastating wildfires in California. 

He noted that "reinsurers will have ended their 1.1 renewals reasonably happy with the terms and conditions that they achieved," and although there has been some rate reductions, "they've been for programmes that either warranted it by class or by territory, and a lot of them were springing off some very, very attractive pricing."

Vickers explained that while reinsurers will be pleased with the T&Cs achieved at the recent renewals, they will be less pleased with growth outcomes. 

“So, the question for them for the rest of the year is what they can do about increasing their premium volume or achieving their premium growth targets that they've got in 2025. Or, are they going to have to row back from those a little bit and say, look, we're not going to chase the market down. So, that is, I think, the real test that we're coming into, and we'll see that played out over the next big renewal seasons of 1.4, 1. 6, and 1.7,” he said. 

During the interview, Vickers explores conditions in property and casualty markets, as well as the expanding alternative capital space, and whether conditions are conducive to reinsurers meeting their cost of capital again this year. 

Vickers also touches on the industry’s cost of capital and whether this can be met or exceeded in 2025 and considers where firms might look to deploy their capital as industry levels hit new heights in 2024. 

He also comments on the Los Angeles wildfires and the broader natural catastrophe landscape as insured losses from events once again exceeded $100 billion in 2024, and by some way. 

Listen to the full podcast episode to hear more from Gallagher Re's Vickers on the 1.1 2025 renewals, the property and casualty markets, the insurance-linked securities (ILS) sector, rising cat losses and more.