Property & Casualty Reinsurance Market Report 2025

The property & casualty reinsurance market size has grown rapidly in recent years. It will grow from $460.23 billion in 2024 to $515.41 billion in 2025 at a compound annual growth rate (CAGR) of 12%. The growth in the historic period can be attributed to economic growth and asset accumulation, regulatory requirements and compliance, globalization and increased business risks, natural disasters and catastrophic events, legal liability concerns.

The property & casualty reinsurance market size is expected to see rapid growth in the next few years. It will grow to $805.34 billion in 2029 at a compound annual growth rate (CAGR) of 11.8%. The growth in the forecast period can be attributed to climate change and extreme weather events, cybersecurity risks and data breaches, global economic trends and trade risks, liability concerns in the digital age, pandemic and public health risks. Major trends in the forecast period include customer-centric solutions, integration of iot devices, rise of parametric insurance, collaboration with ecosystem partners, pandemic preparedness.

The anticipated increase in the number of natural calamities is set to drive the growth of the property and casualty reinsurance market in the upcoming years. Natural calamities, arising from hazards such as earthquakes, floods, cyclones, hurricanes, volcanic eruptions, or landslides, have adverse effects on the environment, causing property damage, loss of life, and other negative impacts. Reinsurance plays a crucial role in helping property and casualty insurers manage risks associated with concentrated natural disasters. Therefore, the surge in natural calamities is expected to bolster the property and casualty reinsurance market. For instance, Forbes reported in 2022 that the U.S. witnessed 18 climate disasters causing over $1 billion in damage, totaling $175.2 billion and resulting in 474 fatalities. Consequently, the increase in the number of natural calamities is a driving force behind the property and casualty reinsurance market.

The increase in residential construction is anticipated to drive the growth of the property and casualty reinsurance markets. Residential construction involves the building, renovation, or expansion of homes and housing units, including single-family houses, apartments, and condominiums. An uptick in residential construction heightens the demand for property insurance, as newly constructed homes require coverage against risks such as natural disasters and accidents. This demand subsequently boosts the property and casualty reinsurance sector, as insurers look to mitigate their exposure by transferring some of the risk to reinsurers. For instance, in August 2023, the U.S. Census Bureau, a U.S.-based government agency, reported that privately owned residential housing completions reached 1,406,000 units, reflecting a 3.7% increase from 1,355,000 in August 2022. This indicates significant growth in residential construction. Therefore, the rise in residential construction is driving the growth of the property and casualty reinsurance markets.

Major companies in the property and casualty reinsurance market are concentrating on product innovation, including municipal flood insurance programs, to improve risk management solutions and deliver timely financial assistance. A municipal flood insurance program is a targeted insurance initiative aimed at safeguarding local government entities from financial losses resulting from flood events, especially those triggered by extreme weather occurrences like atmospheric rivers. For example, in October 2024, Amwins, a U.S.-based distributor of specialty insurance products and services, collaborated with Floodbase, a U.S.-based remote flood data platform, to introduce a new municipal flood insurance program designed to reduce the financial risks associated with atmospheric river flooding in California. This groundbreaking program provides parametric payouts that offer immediate funds to municipalities based on the intensity of flooding events, facilitating faster recovery and enhancing financial resilience against the impacts of extreme weather.

Strategic partnerships take center stage among major companies in the property and casualty reinsurance market, aiming to expand capabilities and sustain positions in the market. This collaborative approach involves mutually beneficial agreements between entities to achieve common goals, share resources, and leverage strengths. In September 2023, AXIS Capital Holdings Limited and Stone Point Credit Advisers LLC partnered to create Monarch Point Re, a new collateralized reinsurer based in Bermuda. With over $400 million in capital, this strategic partnership focuses on underwriting casualty business, combining AXIS's $75 million contribution with Stone Point Credit's additional $75 million investment. The collaboration aims to establish Monarch Point Re as a significant player in the reinsurance market, emphasizing a commitment to the dynamic landscape of the insurance and reinsurance industries.

In February 2022, Swiss Reinsurance Company Ltd. acquired Champlain Reinsurance Company for an undisclosed amount, showcasing Swiss Re's expertise in addressing legacy challenges for business partners. Champlain Reinsurance Company, a Switzerland-based run-off reinsurance captive of Alcan Holdings Switzerland AG, became part of Swiss Re's strategic portfolio.

Major companies operating in the property & casualty reinsurance market include Barents Re Reinsurance Company Inc., Berkshire Hathaway Inc., BMS Group Limited, China Reinsurance Corporation, Everest Re Group Ltd., Hannover Re SE, Society of Lloyd's, Munich Reinsurance Company, PartnerRe Ltd., Reinsurance Group of America Incorporated, SCOR SE, Swiss Reinsurance Company Ltd., AXA XL, MAPFRE Insurance, IRB-Brasil Resseguros S.A., Transatlantic Reinsurance Company, Arch Capital Group Ltd., AXIS Capital Holdings Limited, RenaissanceRe Holdings Ltd., Aspen Insurance Holdings Limited, Alleghany Corporation, Markel Corporation, Fairfax Financial Holdings Limited, White Mountains Insurance Group Ltd., Korean Reinsurance Company, Arch Reinsurance Company.

North America was the largest region in the property and casualty reinsurance market in 2024. The regions covered in the property & casualty reinsurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the property & casualty reinsurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Property and casualty reinsurance involves an agreement between a reinsurer and an insurance firm. In this arrangement, the insurance business, or cedent, transfers liability to the reinsurance firm, which then assumes all or a portion of the risk associated with one or more insurance plans issued by the cedent.

The main types of property and casualty reinsurance are categorized as direct selling and intermediary selling. Direct selling refers to the practice of selling goods outside of a traditional retail environment, such as online, at home, or in other locations. The modes of selling involved include online and offline methods, which are commonly utilized by small reinsurers and mid-sized reinsurers for life and health reinsurance, as well as non-life or property and casualty reinsurance.

The property and casualty reinsurance market research report is one of a series of new reports that provides property and casualty reinsurance market statistics, including property and casualty reinsurance industry global market size, regional shares, competitors with property and casualty reinsurance market share, detailed property and casualty reinsurance market segments, market trends, and opportunities, and any further data you may need to thrive in the property and casualty reinsurance industry. This property and casualty reinsurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The property and casualty reinsurance market includes revenues earned by entities by providing facultative reinsurance and treaty reinsurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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