Best’s Market Segment Report: AM Best Maintains Stable Outlook on Global Non-Life Reinsurance Segment

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has maintained its stable outlook on the global non-life reinsurance segment, noting that it remains fundamentally strong even as it moves past the peak of the hard property market.

In its Best’s Market Segment Report, “Market Segment Outlook—Global Non-Life Reinsurance,” AM Best states that the segment’s strong performance since 2023 has driven robust organic capital generation, leaving the market with ample capacity either to return capital to shareholders or to deploy it in writing business. Although the reinsurance pricing cycle is past the peak of a protracted hard property market, reinsurers have largely upheld underwriting discipline, maintaining higher attachment points and tighter terms and conditions. While projected margins have narrowed, property exposures are still being priced at levels that remain above technical adequacy in the aggregate.

“Balance sheet strength across the non-life reinsurance segment is favorable from a credit perspective, although the imbalance created by abundant capacity, partially offset by growth in demand for reinsurance, has been a primary driver of pricing erosion in property and property catastrophe lines of business,” said Michael Lagomarsino, senior director, AM Best.

Persistent social inflation, elevated frequency and severity of weather-related events and geopolitical and macroeconomic uncertainty continue to weigh on the segment; however, over the next 12 months, record capital, sustained underwriting discipline and supportive investment income should keep returns at or above the cost of capital, positioning the segment to sustain profitability.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=368117.

A video discussion about this outlook is also available at http://www.ambest.com/v.asp?v=ambglobalnlre926.

This Best’s Market Segment Report is part of AM Best’s look at the global reinsurance industry ahead of the Rendez-Vous de Septembre in Monte Carlo. Other reports, including AM Best’s ranking of top global reinsurance groups and in-depth looks at the insurance-linked securities, life/annuity and regional reinsurance markets, have been published in August. To view AM Best’s global reinsurance reports, as well as video coverage of Rendez-Vous de Septembre, please visit AM Best’s Reinsurance Information center.

Lastly, AM Best will host its annual reinsurance market briefing at Rendez-Vous de Septembre on Sept. 6, 2026, at 10:15 a.m. (CEST) in Monte Carlo. For more information, please visit the event website.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.