Clear evidence re/insurance industry is still cyclical: W. R. Berkley CEO

Core Insights - The re/insurance market remains cyclical, with diminishing margins in the property catastrophe reinsurance business, indicating a trend of softening in this segment [1][4][8] Market Dynamics - The CEO of W. R. Berkley Corporation noted that the past 90 days have shown clear evidence of the cyclical nature of the insurance industry, which often engages in self-sabotage [3][4] - There is still some margin in the property catastrophe reinsurance business, but it is eroding, and further softening is expected [4][9] Rate Trends - Reinsurance broker Guy Carpenter's index indicated a decline in global property catastrophe reinsurance rates after the April and mid-year 2025 renewals, following a 6.6% decline after the January 2025 renewals [6] - Despite the decline, the index remains over 50% higher than its last low in 2017 and higher than all years from 2006 to 2023, suggesting that pricing is still attractive [7] Future Expectations - The expectation is that property catastrophe rates will soften further heading into 2026, barring any significant catastrophic events [8] - The company sees potential margins in the business, but it remains to be seen if these margins will persist into 2026 [9] Casualty Reinsurance Insights - In the casualty reinsurance space, the company expressed frustration with the sector, noting that reinsurers seem dissatisfied with the rate increases achieved by their cedants, suggesting there is room for improvement [10]