Ascot to hold reinsurance buying steady for 2026 despite softer market

Ascot is taking a more selective and portfolio-driven approach to reinsurance purchasing in 2026 as its business becomes increasingly diversified, its group head of ceded reinsurance has said.

“We do not expect to buy more in 2026 as we focus on actively managing our inwards portfolio through the softening market in short tail lines rather than relying too heavily on outward reinsurance trades,” Ashleigh Edwards (pictured) told Intelligent Insurer.

However, she stressed that the position remains under review. “We will reassess as we head into the wind season.”

Edwards, who joined Ascot in January, is leading a broader shift towards aligning reinsurance and capital more closely with the group’s evolving risk profile following several years of growth.

“The last five years have seen the gross portfolio grow to more than $5 billion in premium and my focus for 2026 will be optimising the various capital sources available to us – including traditional reinsurance and third party capital – to match against the increasingly diversified global risk profile of the group,” she said.

“As part of this evolution we expect to realign reinsurance strategy where it makes sense.”

This shift reflects a move towards evaluating reinsurance based on structural fit within the portfolio, rather than short-term pricing dynamics alone.

“Looking forward, the focus will be more around matching coverage and economics against the inherent cost structures and volatility profiles of our portfolios rather than being overly fixated on short term dynamics,” Edwards said.

“Market dynamics will feed into how we value different structures and pricing options,” she added, but stressed that “alignment of risk with our reinsurance partners and sustainability over the longer term” will take precedence. “Our goal continues to be strong core reinsurer relationships across market cycles and we will look to deepen those relationships across product[s] as our portfolio grows.”

In a softening market, Edwards made clear that Ascot will resist the temptation to simply add more cover. “We have in place core programmes in some areas and in others will be seeking reinsurance options that support our growth strategy,” she said. “As pricing shifts, we will continue to assess the value proposition of different options that may have been less attractive in a harder market but in the main do not expect to be buying more on the existing portfolio.”

The group’s growing diversification is also shaping its forward-looking approach. “Given the continued growth in size and breadth of our gross portfolio we will be focused on the best fit prospectively rather than looking backwards,” Edwards said, noting that this is influencing both risk tolerances and engagement with key reinsurance partners “in a more holistic framework”.

That same lens extends to capital allocation decisions. “The shifts in appetite we see from the traditional reinsurance market along with the development of Leadline Capital Partners will factor into a holistic assessment to ensure we are most efficiently balancing the capital available to us in support of continued profitable growth,” she said.

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