HWD · Management · broking and reinsurance intermediation · Europe
Howden
Limited room for manoeuvre · updated 30 October 2026
What they did
In its pre-Monte Carlo report on 3 September, Howden Re wrote that capital is abundant and that only a serious deterioration would reverse the softening. Its 19 October study of 42 European non-life insurers showed the capital-light group earning a return on equity of about 22% with €28 of capital per €100 of premium, against under 5% for the capital-heavy group with €86. It estimated conflict-related political violence and terrorism losses could exceed $3 billion.
Why
In a market where prices are falling, the broker protects its value by selling reinsurance as a capital tool. With debt financing costs at multi-decade highs, clients' capital plans are moving to the centre of reinsurance decisions.
What they must do
At 1 January it has to pass property catastrophe price cuts on to clients while placing shrinking capacity in war and political violence. Holding its loss estimate above $3 billion puts it at the upper end of the market's $2–4 billion range.
What comes next
The 1 January 2027 renewal report, due in early January, will be the first broker reading of property catastrophe and war pricing. Its war and political violence line, on direction and per-risk limits, will show how Howden's loss estimate of over $3 billion feeds into price.
Preference
Position reinsurance as a capital tool rather than a protection product.
Observed behaviour
In a softening market it steers clients towards rebuilding retentions and programme structures.
Sources
- Reinsurance News — Howden Re highlights reinsurance's role as a capital tool as prices soften (19 October 2026)
- Reinsurance News — Substantial deterioration required to reverse softening momentum: Howden Re (3 September 2026)
- Insurance Business — War risk reinsurance posts first loss since 9/11 (22 September 2026)