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Bermuda reinsurers post strong H1 2026 results as cat losses ease
The seven Bermuda reinsurers Fitch covered reported a combined ratio of 85.3% for the first half of 2026, with catastrophe losses contributing 2.8 percentage points, including claims tied to the Iran conflict.
Fitch Ratings said Bermuda-based re/insurers delivered strong aggregate performance in the first half of 2026, supported by lower catastrophe-related losses. The agency also cautioned that global reinsurance conditions remain difficult, with abundant capacity and strong competition continuing to pressure pricing and premium growth.
Fitch said competition is contributing to lower prices across many lines and more flexible policy terms and conditions. Even with the softer market, Fitch expects reinsurers to keep generating favourable returns during 2026, and expects the US property and casualty insurance market to remain broadly stable.
Across the seven Bermuda re/insurers covered by Fitch, the group posted an aggregate combined ratio of 85.3% for the first half of 2026, and each company generated an underwriting profit. Catastrophe losses accounted for 2.8 percentage points of that combined ratio, including claims connected with the Iran conflict, which Fitch estimated at total industry insured losses of about USD 3 billion.
Fitch noted that the 85.3% combined ratio compares with a 90.0% combined ratio in 2025, when catastrophe losses added 6.7 percentage points, largely driven by California wildfires. It estimated accident-year combined ratios of 85.5% in both the first half of 2026 and full-year 2025 when catastrophe losses were excluded, while net income return on equity reached 15.7% in the first half of 2026, down from 18.6% in 2025. Fitch also said reserve development supported reported underwriting results, with reserve releases improving the group’s combined ratio by 3.0 percentage points during the first half of 2026.