AM Best Market Segment Report On Reinsurers
AM Best reports that a group of U.S. and Bermuda reinsurers maintained underwriting profitability in 2025, with a 16.8% net return on equity, despite slower premium growth. The composite includes seven companies, such as Arch Capital and Everest Group. Profitability was supported by higher investment income, but growth slowed to less than 1.0% due to market softening. AM Best expects muted growth in 2026 amid declining rates in property and casualty lines.
How this was made
The 30-second read
Why it matters
Provides sector‑wide profitability metrics and growth outlook, but no single company catalyst.
Market read
Highlights steady underwriting performance in the reinsurance sector, useful for investors monitoring insurance‑linked securities.
What to watch
Potential impact of the 2026 Atlantic hurricane season and rate declines could alter the outlook.
Background
The article summarizes a new AM Best market segment report covering U.S. and Bermuda reinsurers.
Ticker impact
PartnerRe is part of the composite showing a 1.7‑point combined‑ratio deterioration.
Potential modest downside as combined ratio worsens.
Combined‑ratio change is a new data point but limited in isolation.
RenaissanceRe Holdings is included in the composite with stable ROE and soft premium growth.
Little to no short‑term impact.
Sector data reinforces existing expectations.
Market effects
Reinsurance sector shows sustained profitability despite soft premium growth, suggesting resilience.
U.S. and Bermuda reinsurers may influence broader insurance market sentiment.
AM Best's composite may be referenced by global investors assessing reinsurance risk.
Counterpoint
Investors could argue that muted premium growth signals upcoming pressure on margins, warranting caution.
Key entities
- Rating AgencyAM Best
Publisher of the reinsurance market segment report.
