Renaud Guidée, Chief Executive Officer (CEO) of property and casualty reinsurer AXA XL Reinsurance, has said that in the current reinsurance market environment, which he describes as a “fair and healthy balance” between supply and demand, is the time when you can make a difference.
Yesterday, Guidée discussed current market dynamics and more on an AM Best panel, following the rating agency’s global reinsurance sector outlook revision to stable from positive.
The session was moderated by John Weber, senior associate editor, AM Best, and after an overview of the shift to a stable outlook by Greg Dickerson, Director, Global Re Analytics, AM Best, Guidée and fellow panellist Aditya Dutt, President, Aeolus Capital Management Ltd., were quizzed on the reinsurance and insurance-linked securities (ILS) markets.
On the heels of the January 1st, 2026, reinsurance renewals, during which further property market softening occurred while casualty was overall relatively stable, Guidée offered his thoughts on current market conditions.
“So, definitely, the supply of capital is on the rise. But what matters is that facing this supply of capital, you have a demand of capital, demand of capacity, demand of protection, whose growth is running unabated as well. The world is definitely becoming a riskier place. Our clients, insurers, are in need of certainty, predictability, visibility, which means that they are looking for the services provided by reinsurers to actually bridge that gap between uncertainty in the world and the certainty that they need for the running of their own business,” he said.
Adding: “So, I would characterise the state of the market as a fair and healthy balance between supply and demand of capital. And I also think that when looking at the state of the market, it’s very important to take into account, obviously, the cyclical dynamic, and there’s definitely a cycle at play, but also to take stock of the secular trends. And what is for sure is that given all the threats that are materialising and that are on the rise, both natural events and man-made events, the demand for protection goes only one way, which is up. And so that secular trend is definitely supporting the insurance market.”
In terms of any surprises at the recent 1.1 2026 renewal season, the CEO told AM Best and the audience that AXA XL Reinsurance, having consistently reviewed the market, was well prepared for the turn of events.
“We had planned for this, and one of the benefits of being really in the tent with our clients, having not only a very close dialogue with them, but also a strong partnership, is that we are able to anticipate together what will be their needs and how the market will evolve as a consequence,” said Guidée.
As the market shifts from hard to what AM Best’s Weber described as a more stable environment, Guidée emphasised that for his firm, whatever market conditions may be, the strategic priority is always to support its clients and ensure what the reinsurer brings to them is relevant and an enabler to their own success.
“This is definitely the yardstick which we use to gauge the impact that we have. So, it’s a key strategic priority, and in this market, we want to make sure that the solutions we provide continue to be as efficiently priced as possible. And this is how we fulfil the role which Greg mentioned earlier, which is a wall of balance sheet protections for our cedents and all of our clients and business partners.
“I do believe that in these market conditions, which become more selective, and you could argue a bit more challenging to navigate, this is when you can make a difference. And I think it’s fair to say that it is in that kind of market environment that the best underwriters come forward,” he said.
