Howden Re has suggested that the 1 July 2026 reinsurance renewal in Latin America completed in a market defined by abundant capacity, intensifying competition and a growing appetite for structural innovation, with property catastrophe excess of loss programmes seeing rate reductions in the range of 15% to 20%.
At the 1 July 2026 reinsurance renewal in Latin America, existing local players were reportedly joined by expanded interest from Bermuda, London and MGA markets, deepening a supply base that gave cedents meaningful leverage across both pricing and programme design.
“The clearest expression of that leverage was in risk-adjusted pricing. Property catastrophe excess of loss programmes saw rate reductions in the range of 15% to 20%, with downward pressure compounded by a notable trend of over-placement,” Howden Re explained.
According to the firm, the softening extends beyond pricing, with abundant proportional capacity driving ceding commissions up by a further two to three percentage points as reinsurers compete for access to cedent portfolios.
As proportional cessions increase, cedents are purchasing smaller catastrophe excess of loss limits, a structural shift that reflects both the availability of proportional protection and the economics of a well-supplied market.
Reinsurers are also using the renewal to broaden their footprint. With property catastrophe capacity comfortably placed, appetite has extended into casualty and specialty lines, as markets seek to round out their Latin American portfolios with supplemental business.
Howden Re also noted how low-attaching, high-rate-on-line layers on both catastrophe and risk programmes are attracting increasing interest in structured solutions, as cedents and reinsurers explore more tailored approaches to risk transfer at the more volatile parts of the tower.
At the same time, parametric products are also said to be gaining traction, moving from a “niche consideration” to a more broadly evaluated alternative and supplemental coverage option.
April McLaughlin, Head of Howden Miami, commented, “Latin America is attracting a broader and more competitive reinsurance market than we have seen in some time.
“The interest from Bermuda, London, and MGA markets is not incidental. It reflects a genuine reassessment of the region’s risk-adjusted opportunity. Our role is to help cedents navigate that environment with clarity and purpose, securing not just competitive pricing but structures that will serve them well beyond this renewal cycle.”
Carlos Garcia, Managing Director, Howden Re, said, “What stands out at this renewal is not just the volume of capacity available, but the increasing willingness to explore alternative approaches to risk transfer.
“Cedents are thinking more creatively about their programmes, exploring structured solutions at the lower end of the tower and giving serious consideration to parametric products as part of their overall coverage strategy. That sophistication is a healthy development for the market, and one we expect to continue.”
Looking forward, Howden Re observed that the Latin America reinsurance market is entering the second half of 2026 with capacity at levels that continue to favour buyers.
The firm concluded, “The structural trends visible at this renewal, including over-placement, rising ceding commissions, appetite migration into casualty and specialty, and growing interest in parametric and structured products, demonstrate that abundant capacity is influencing not only pricing, but also programme design. As competition remains strong, cedents are well positioned to evaluate a broader range of risk transfer options than in recent years.”
In related news, Howden Re recently reported that rate reductions of 10% to 15% on loss-free business were broadly achieved at the July 1 reinsurance renewal in Australia and New Zealand (ANZ), as buyers of protection increased their vertical limit purchases.
Howden Re’s analysis revealed that some cedents actually secured larger rate reductions than 15%, as the renewal in ANZ completed amid sustained reinsurer profitability, ample capacity in the market, and an “increasingly assertive buyer community.”
