Aon, a global professional services firm providing risk, retirement and health solutions as well as reinsurance brokerage and advisory services, reports in its Reinsurance Market Dynamics Report for the mid-year 2026 renewals that casualty reinsurance demand remained broadly flat, while pricing conditions stayed favourable across both US and international markets amid rising capacity and sustained competition.
Aon notes that demand for casualty reinsurance was unchanged overall, with insurers largely maintaining existing net retentions and focusing on refining programme structures rather than expanding purchases.
The firm observes that recent portfolio remediation activity in prior years has led some cedents to reassess their reinsurance buying, with an emphasis on efficiency and value. While net retentions were generally stable, Aon highlights that some insurers continued to explore alternative structures and insurance-linked securities solutions to manage cost pressures and diversify sources of reinsurance capital.
Aon reports that capacity was ample and increasing across both US and international casualty markets, supported by the return of traditional reinsurers and continued interest from third-party capital providers.
In the US, Aon highlights increased participation from reinsurers seeking exposure to casualty programmes, alongside disciplined underwriting and targeted growth in selected accounts. Internationally, Aon notes that competition remained strong, with elevated levels of oversubscription on lower-hazard risks, while more complex programmes and those with US exposure attracted a more selective but still well-capitalised market.
According to Aon, pricing conditions were generally favourable at the mid-year renewals. US casualty excess of loss pricing was down around 5% to 10%, while international XL pricing was broadly flat to down 10%. Pro-rata arrangements also reflected supportive market conditions, with ceding commissions broadly flat to up 1% in both regions, underpinned by continued demand for quota share structures as insurers look to manage volatility and optimise returns.
Aon states that overall terms and conditions remained stable, with no material tightening observed at mid-year. The firm adds that quota share structures have seen increased utilisation as insurers respond to softer underlying rate conditions in parts of the market and seek more flexible capital and earnings management solutions.
The firm also highlights continued strong demand for legacy reinsurance solutions, including loss portfolio transfers and adverse development covers. These transactions are being used more widely as capital management tools, particularly following mergers and acquisitions or changes in strategic direction, with current market conditions supported by strong capacity and an active, competitive environment.
In financial and professional lines, Aon reports broadly stable to slightly improved reinsurance outcomes for directors and officers business, supported by stabilisation in underlying markets and increased capacity. Aon further notes that the transactional liability segment is in a period of adjustment following adverse loss emergence outside standard warranty and indemnity covers, with tighter controls on managing general agents likely to influence future capacity and reinsurance demand.
Aon concludes that casualty reinsurance conditions at mid-year 2026 were defined by flat demand, increasing capacity and broadly favourable pricing, providing cedents with flexibility as they prepare for the upcoming 1/1 renewal season.
“International casualty reinsurance conditions remain strong, with ample capacity and diverse appetites across classes and structures, giving cedents room to design programs that fit their evolving portfolios,” commented Alex Chittock, Head of International Casualty, Reinsurance, Aon.
“US casualty writers are rightly seeking credit for the improvements they have made to underwriting, pricing, segmentation and claim-handling. Reinsurers are recognising these improvements with increased capacity,” added Nick Nudo, Head of US Casualty, Reinsurance, Aon.
