Howden HY 2024 Report: Market Shifts, Underwriting Gains, Nat-Cat Risks

The latest Howden Business Intelligence report examines reinsurance market movements at half-year 2024 (HY 2024). The report, drawing from sources such as NOVA, Bloomberg, and proprietary Howden data, highlights several critical trends impacting the industry, with a focus on risk appetite, catastrophe losses, underwriting performance, and reserve developments.

One of the report's key takeaways is the shift toward international market growth, with clearer actions by line of business during midyear renewals. This shift is largely influenced by rate changes that have impacted profit margins. As the report notes, this growth is complemented by improved solvency and underwriting confidence, although caution remains, particularly in the natural catastrophe (nat-cat) sector.

Additionally, the report addresses softer accident years from 2014 to 2019, which have led to reserve strengthening and greater prudence in insurers' loss trend estimates. This approach reflects a strategic adjustment as insurers aim to better align with current market conditions.

The report further highlights that underwriting performance has seen notable improvement, driven by enhanced pricing strategies and better risk selection. This has led to more favorable technical earnings, a crucial trend that has been observed throughout the HY 2024 earnings updates.

Natural catastrophe losses, however, remained elevated, particularly in North America, which continues to experience significant insured losses. The report underscores the importance of vigilance in capital allocation and risk management, given the heightened risk premiums associated with these events.

Overall, the Howden Business Intelligence report for HY 2024 paints a complex picture of market resilience. With ongoing growth in international markets, strategic reserve management, and the continuing challenge of catastrophe risk, the industry faces a cautious but optimistic full-year outlook.

For those interested in more in-depth details, the full report is available here.