SIGNAL IDUNA Reinsurance (SI Re) has completed its January 2026 renewal with premium volume of €222 million, matching its prior-year result as the Zug-based reinsurer navigated a market where abundant capacity and softening rates tilted leverage firmly toward buyers.
Dr. Arnold Löw (pictured above), CEO of SI Re, said the company repeated its record performance on a like-for-like basis, describing the outcome as a reflection of its ability to maintain a portfolio in a competitive pricing environment.
The result comes amid broader market softening. According to Howden Re, risk-adjusted pricing for property catastrophe treaty business declined by 14.7% at the January 2026 renewals – the largest year-on-year reduction since 2014.
Guy Carpenter, in a separate report, attributed the shift to capital growth, one of the lowest reinsured catastrophe losses in the past decade, and strong reinsurer returns.
Despite the pricing pressure, reinsurers remain well-positioned. KBW reports executives describing 2026 as potentially the "fifth-best year" ever for catastrophe reinsurance, owing to increased attachment points, improved portfolio quality, and strong investment income.
The broker estimates that reinsurers' share of industry losses was only 11% in 2025, compared to the 20% they might have absorbed prior to the market corrections of 2023.
SI Re said it expanded its presence in the European market while retaining participations on accounts with long-term potential. The company also entered new geographies and select lines of business, broadening its client base.
Löw said SI Re continued to balance its reinsurance book with its ILS portfolio, describing the approach as a dual strategy that allows the company to manage and diversify exposures while maintaining underwriting discipline.
In the insurance-linked securities market, SI Re reported continued growth, expanding its ILS portfolio from US$89.5 million at year-end 2024 to US$111.5 million. The company has maintained a presence in the asset class since 2010.
The expansion mirrors a record year for the broader ILS market. According to industry data, total ILS issuance exceeded US$20 billion in 2025 – a 45% increase year on year and the first time annual issuance has surpassed that threshold. Artex Risk estimates the outstanding ILS market at approximately US$56 billion.
SI Re noted that the California wildfires early in 2025 and Category 5 Hurricane Melissa, which made landfall in Jamaica, did not significantly affect market confidence.
Dr. Robert Salzmann, chief underwriting officer at SI Re, said the ILS space experienced sharp risk-spread compression in 2025, in line with the broader reinsurance market. He added that the company identified value in diversifying transactions and continued to develop its ILS book while maintaining portfolio metrics.
