Reinsurance broker Gallagher Re has reported that Japanese property catastrophe programmes ran loss free, leading to risk-adjusted rate decreases of between -15% and -17.5% at the April 1st, 2026, reinsurance renewals, while property catastrophe in other regions saw risk-adjusted rate decreases of between -7.5% and -25%.
“The April renewals continued the themes observed at January 1, with cedants achieving significant risk-adjusted rate reductions across property and specialty lines, while casualty pricing remained broadly stable,” Gallagher Re explained.
The broker noted that reinsurers maintained a relationship-driven approach at the April 1st, whilst actively and rationally competing for well-structured risks, supported by abundant capacity.
Gallagher Re’s report further highlighted the significance of strategic thinking for cedants, stressing that the prevailing market conditions offer a unique opportunity to reshape risk transfer programs, not merely to cut costs but also to enhance structural resilience and optimise portfolio economics.
Following a relatively benign year in 2025/26 from a nat cat loss perspective, Gallagher Re observed that rates saw significant reductions in all renewing markets for both loss-free per risk and catastrophe covers, with some of the biggest decreases coming in Japan, the US and the Philippines.
According to Gallagher Re’s analysis, Japan risk-adjusted property catastrophe loss-free rates were down -15% to -17.5% at April 1st.
However, outside of Japan, the broker’s report finds that property catastrophe in other regions saw risk-adjusted rate decreases of between -7.5% and -25%, reflecting an acceleration in the rate decrease witnessed at January 1st.
Regarding casualty, Gallagher Re noted that in Japan, programmes’ pricing primarily focused on recognising significant underling mitigation of US exposure in portfolios, leading on average to slight risk-adjusted increases but reductions in total treaty premium spend.
Tom Wakefield, Global CEO of Gallagher Re, commented: “There is an opportunity for clients to use the current window to reduce cost and to build the kind of structural protection that positions them well for whatever comes next.”
He continued: “Gallagher Re’s analytical depth, market relationships, and structural creativity are helping clients to turn current conditions into durable advantage.”
“Japanese cedants, which are the predominant focus of this renewal, largely achieved risk-adjusted reductions in the high-teens on property catastrophe portfolios. In casualty lines, negotiations relied heavily on cedants’ ability to demonstrate the impact of US exposure mitigation and reduced portfolio volatility. This led to lesser premium spend, while risk-adjusted rate ticked up on average to keep pace with loss trend,” Gallagher Re further noted.
Adding: “Amidst several broader considerations, including ongoing geopolitical uncertainty and the continued robust financial health of reinsurers, Japanese cedants entered the renewal with confidence in the ongoing benefits of their significant portfolio remediation — and were rewarded.”
Gallagher Re also stressed, that within the current landscape, cedents should prepare to move past just accepting lower rates for their desired coverage, and instead focus on capitalising on the opportunity to build structural resilience.
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