As the property direct and facultative (D&F) and binders treaty reinsurance market enters the final months of 2025, industry leaders at Howden Re see the sector moving into a transitional period. The phase, described as a “hard market softening,” requires both discipline and collaboration among all participants, according to Howden Re’s recent ‘Who Dares Wins’ report.
Paul Esterbrook, Managing Director at Howden Re, emphasized the importance of strong relationships in navigating this environment. “This is not a market that rewards short-term thinking,“ said Esterbrook. “We have seen cycles come and go, but the partnerships that endure are the ones built on transparency and consistency.”
Esterbrook also highlighted the firm’s progress since its launch: “Now in our fourth year since the launch of Howden Re, we are very proud to have built a substantial, high-quality client base in the D&F and Binders treaty space, gaining considerable market share year on year.”
Despite changes in market structure and players, reinsurer appetite remains robust for cedants with proven track records. Capacity for portfolios with good performance has stayed stable, aided by increased flexibility and awareness of catastrophe risks. According to Esterbrook, “The names on the doors might change, but most of the people, and the relationships built over years, are the same. That continuity matters and it’s what allows us to have real conversations built on shared history and trust.”
Market recalibration after Hurricane Ian led to higher attachment points in previous years; however, these have decreased slightly over the past two years. This adjustment has allowed room for new approaches in programme design as both cedants and reinsurers look for ways to enhance capital efficiency.
Chris Medlock, Director of Global Specialty Treaty at Howden Re, pointed out that personal connections remain central despite increasing data flows. “Clients don’t want a broker who is just a postbox,” Medlock said. “They want a team that understands both sides of the table - who can interpret the nuances, manage outcomes and communicate effectively. That is where real value is created.”
Howden Re’s Property Specialty team maintains that brokers today must be more than intermediaries—they must act as strategic partners who bring technical expertise and trusted relationships into every engagement. The company stresses teamwork over individual action to leverage collective experience for better results.
“It’s about maintaining the discipline to communicate candidly, manage expectations and stay focused on long-term goals,” added Esterbrook. “That consistency builds resilience, for clients and for the market.”
Medlock also commented on long-term partnerships: “Clients who prioritise long-term partnerships tend to achieve better outcomes over time. When the market tightens again – as it will again – those relationships are what ensure continuity and support. As highlighted in our ‘Who Dares Wins’ report earlier this year, collaboration, innovation and adaptation will be key to capturing the opportunity and sustaining resilience in the next phase.”
Looking ahead to 2026 renewals, Howden Re reports that although conditions are softening from their peak in 2023 profitability continues for both cedants and reinsurers as capacity remains available across diversified portfolios.
“We’re proud of the relationships we’ve built with major markets over decades,” said Esterbrook. “That doesn’t happen overnight. It’s built on years of trust, consistency and showing up in every phase of the market cycle.”