Reinsurance markets aligned & disciplined heading into Baden-Baden: Antares CEO

Antares Global CEO Mike van der Straaten has suggested that a benign loss year to date, together with ample capacity and steady ILS activity, is placing some pressure on reinsurance pricing, though levels remain solid and market behaviour rational, leaving the sector disciplined and aligned heading into Baden-Baden.

“As we approach the 1.1 renewals, market conditions are stable across all major regions, with similar dynamics evident globally and in the U.S. Pricing discipline remains intact, though the pace of firming has eased as capacity continues to return,” van der Straaten said in a new statement ahead of the landmark event in Germany.

According to him, cedents are achieving modest improvements in terms, particularly in peak zones, while reinsurers remain selective and focused on risk quality.

With this in mind, the CEO has anticipated “measured softening” at 1.1 in 2026, though not a structural weakening, with reinsurers focused on maintaining underwriting discipline and differentiation as the market transitions toward equilibrium.

“The overall balance of power is shifting gradually back toward buyers, establishing a more sustainable footing for 2026,” he added.

van der Straaten continued, “With margins tightening and the hard market cycle plateauing, strategic consolidation discussions are resurfacing globally.

“Larger groups continue to pursue scale and diversification, while mid-tier players are reassessing partnerships or M&A to enhance competitiveness.”

“Execution remains selective, valuation gaps, capital considerations, and regulatory hurdles persist, but the strategic rationale for consolidation is strengthening as the cycle normalises and pricing pressures re-emerge.”

Meanwhile, the global reinsurance market also reportedly faces a familiar macro backdrop, which includes persistent inflation, geopolitical instability, and elevated interest rates.

“Improved yields offer some offset, but volatility across capital markets could weigh on returns and investor sentiment,” van der Straaten observed.

In related news, J.P. Morgan recently said that while reinsurance results are expected to remain strong in the near term, the bank views the sector as “structurally inferior” to personal and commercial lines over the long term and anticipates further price declines at the 1.1 2026 renewals.