Proportional treaties continued to dominate the property reinsurance market in the Middle East during the 1 July renewal season, according to broker Gallagher Re.
In its July 2025 ‘1st View’ renewals report, Gallagher Re said that reinsurers maintained pressure on commission levels and event limits as well. Also, reinsurers were pushing to further reduce facultative-inward and co-insurance within the treaties.
There was increased appetite from reinsurers towards the region. Capacity remained abundant, with new reinsurers entering the market. There was very little lead competition on pro-rata.
There was healthy competition in excess of loss programmes. Reinsurers were pushing priorities up to align interests; however, attachment points remained low, typically ranging from a 1-in-3 to 1-in-5-year return period. Top CAT layers were being placed at a minimum 2% rate-on-line, but with some private layers placed at as low as 1.5%.
In the UAE market, despite loss creep from the 2024 floods, pricing pressure was not as pronounced as last year.