Best’s Market Segment Report: US and Bermuda Reinsurers Maintain Strong Performance Despite Softening Market

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
A composite of AM Best-rated U.S. and Bermuda reinsurers generated a fifth-straight year of underwriting profitability, even as premium growth fell sharply, according to a new AM Best report.

The Best’s Market Segment Report, “US & Bermuda Reinsurers Maintain Strong Performance Despite Softening Market,” 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, Lloyd’s, life/annuity, health and regional reinsurance markets, will be available during August and September.

AM Best’s composite of U.S. and Bermuda reinsurers consists of seven reinsurance groups domiciled in either the United States or Bermuda, for which the reinsurance business accounts for the majority of their underwriting portfolios. The seven companies are Arch Capital Group Ltd.; Everest Group, Ltd.; General Re Corporation; Odyssey Group Holdings, Inc.; PartnerRe Ltd.; RenaissanceRe Holdings Ltd.; and Transatlantic Holdings, Inc. (Transatlantic).

Overall profitability in 2025 matched 2024’s strong performance, with an aggregate net return on equity of 16.8% reported in both years. The composite’s strong underwriting results continue to be buttressed by higher net investment income driven by the sustained higher interest rate environment, particularly in the United States.

At the same time, growth in gross premium was less than 1.0% in 2025 following growth of 11.7% in 2024. According to the report, the slower growth is an indication that reinsurers are maintaining underwriting discipline in a softening market where attractive opportunities are increasingly difficult to identify.

“AM Best expects top-line growth for the composite to be similarly muted in 2026, given the acceleration of rate decreases seen in property reinsurance and a slowing of price improvement in U.S. casualty lines after several years of strong gains,” said Greg Dickerson, director, AM Best.

Other report takeaways include:

The composite’s 2025 combined ratio of 90.2 represented a 1.7-percentage-point deterioration over the prior year, despite lower catastrophe losses and greater favorable loss reserve development.
The first half of 2026 was largely uneventful in terms of large loss events, so despite accelerating rate declines at each of the key 2026 renewal dates, the composite should produce solid underwriting income for the first six months of the year.
Results for 2026 will likely be largely dictated by the Atlantic hurricane season and the magnitude of any additional further adverse loss reserve development in U.S. casualty lines.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=368107.

For global reinsurance reports ahead of Rendez-Vous de Septembre, as well as video coverage of the event, 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.