Reborn Willis Re ‘excited’ by opportunities in current market, says John Fletcher

Willis Re is back in the reinsurance market and sees plenty to play for as falling prices, abundant capacity and changing buying patterns create fresh opportunities for brokers and their clients. 

Key points:
Property treaty rates fall double digits
Reinsurers still have room to grow
Buyers can use savings to broaden cover

The business, which WTW returned to the reinsurance market through a joint venture with Bain Capital in late 2024, is rebuilding at a very different point in the cycle from the hard market that followed its former operation’s sale in 2021.

For John Fletcher, who joined this year to lead Willis Re in Bermuda, that timing presents an opportunity.

“Willis Re is excited by the opportunities in the current market,” he told Monte Carlo Today.

Fletcher is equally enthusiastic about building the business itself.

“The opportunity to help build a business from the ground up was extremely appealing,” he said. “The combination of Bain and WTW’s expertise offered a unique opportunity to scale a business with detailed planning but at speed.”

The build out is gathering pace. Willis Re agreed in August, subject to regulatory approval, to acquire BMS Re’s US reinsurance division, a deal that will establish an operational presence in the US and substantially expand its international footprint. Fletcher, meanwhile, says much of the infrastructure needed to compete is already in place.

“Our objective is to demonstrate that we are fully operational and capable of delivering from day one.”

“It is essential that insurers and brokers move beyond pure price negotiations.”

A market in motion

Willis Re’s return comes as competitive pressure is reshaping the market.

Fletcher said prices are falling across many lines, although some loss-affected areas of marine and energy and heightened risks in political violence and terrorism are seeing flat rates or small increases.

Mid-year property treaty renewals produced double-digit price reductions, with “some of the most significant reductions towards the upper ends of programmes”, he said.

Property D&F has also faced significant pricing pressure, particularly in North American open market business, while property retro buyers benefited from more favourable pricing at mid-year.

But Fletcher does not believe the market has crossed into territory where reinsurers can no longer generate attractive business.

“That doesn't mean the market has reached pricing levels that are unattractive, or that are preventing reinsurers from achieving growth,” he said.

“So, although I expect many conversations to include price adequacy, I also expect to hear people discussing where they are seeing opportunities to grow.”

For buyers, meanwhile, greater competition creates choices beyond simply pushing for another price reduction.

“While a lot of time is spent talking about price, retentions and contract language remain a key part of any negotiation,” Fletcher said.

“There will be instances where it is preferable to maintain the same level of premium on a slip and look to add value through increased exposure.”

That could include broadening coverage restricted by named territories and perils or adding clash protection from non-property lines for natural catastrophe losses.

Built differently

That changing environment feeds into how Fletcher wants Willis Re to position itself.

“We want to establish a reinsurance broking business built around the client and led by reinsurance professionals,” he said.

His ambition is to combine the personalised service and attention associated with smaller brokers with the technology and analytical resources of a larger organisation.

Starting again also provides an unusual advantage.

“By building new systems free of legacy constraints, we are creating an organisation which is modern and adaptable, and fully able to deliver on what our clients actually need,” Fletcher said.

The proposition will be tested as buyers prepare for the 1 January 2027 renewals.

Recent renewals have concentrated heavily on price reductions and restoring consensus around terms and conditions. Fletcher expects both to remain important, but believes conversations now need to go further.

“It is essential that insurers and brokers move beyond pure price negotiations to articulate challenges buyers currently face and ensure they are optimising their outwards purchasing around these,” he said.

Greater flexibility around structures and premium payment conditions could emerge as reinsurers respond to uncertainty in underlying portfolios and the rating environment. Fletcher is also seeing buyers consider greater use of multi-line and multi-year products.

More ways to buy

Retro is another area where Fletcher sees the range of options expanding as traditional and alternative capital increasingly overlap.

“There is clearly room for both and it’s about utilising the best components from each area for the maximum benefit of the client,” he said.

Quota shares remain a long-term option for many buyers, potentially combining traditional rated capacity with third-party capital through sidecars. Multi-year programmes can lock in certainty for part of a placement, while Fletcher expects index covers to continue evolving.

Parametric solutions are also starting to provide broader coverage more closely aligned with the exposure footprints of treaty and retro buyers.

The proliferation of options reinforces Fletcher’s argument that brokers need to do more than execute placements.

“At Willis Re, we take a fresh perspective when reviewing existing reinsurance programmes, challenging established approaches rather than simply renewing historical placements,” he said.

“Ultimately, our focus is on adding value through strategic advice and insight, rather than simply executing placements,” he concluded.

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