Market News

AM Best reported that US property and casualty net underwriting income increased to $31.2 billion in the first half of 2026. The industry's combined ratio improved to 92.5 as catastrophe losses declined. Higher investment income and realized capital gains contributed to increased pretax operating income, net income, and policyholders' surplus. Read More

S&P maintains a stable view of global reinsurance, supported by strong capitalization and operating results. However, abundant traditional and alternative capacity is expected to soften pricing and reduce underwriting margins through 2027. Natural catastrophes, social inflation, and geopolitical instability remain key risks, while investment income and life reinsurance support earnings. Read More

Fitch Ratings maintains a deteriorating outlook for global reinsurance in 2027 as abundant capacity drives further pricing declines. Rising claims costs, inflation, climate change, and emerging liabilities are expected to pressure margins and earnings. Strong capital, underwriting discipline, reserve releases, and investment income should help reinsurers manage worsening conditions. Read More

US health insurers are increasingly using reinsurance to manage rising medical costs, catastrophic claims, and capital needs. Ceded premiums reached $203 billion in 2025, while stop-loss reinsurance grew sharply. Although captive insurance premiums declined, unaffiliated reinsurance gained market share as insurers sought greater capital efficiency and reduced earnings volatility. Read More

AM Best expects Lloyd's reinsurance segment to maintain adequate pricing and positive near-term underwriting performance despite a softening market. The report emphasizes continued performance oversight as the underwriting cycle weakens. Longer-term results remain volatile because of significant catastrophe exposure, particularly in property catastrophe excess-of-loss business and other reinsurance lines. Read More