Notably, the catastrophe bond market reported a record issuance of more than $16.8 billion dollars in the first half of this year. (Credit: Shutterstock)

Despite natural catastrophe losses in the first half of 2025, midyear reinsurance renewals still saw a “broadly competitive environment,” according to Aon plc’s Reinsurance Market Dynamics Midyear 2025 Renewal report.

Aon credits this reinsurance environment to insurance-linked securities markets and new entrants to the market that were willing to deploy capacity and grow their market share. Industry capital increased to $720 billion at the end of Q1 2025 from $715 billion in the 2024 fiscal year. Two-thirds of the reinsurers tracked for the report saw a double-digit return on equity in Q1 2025.

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