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Carriers weigh capital allocation as rates soften and earnings stay strong

Howden Re said premium growth stayed uneven in the first half of 2026, with liability premiums rising while property and reinsurance premiums fell.

Reported · Written up by our desk · Reinsurance

Reinsurance News reports that Howden Re, in its latest re/insurer earnings report, said carriers are increasingly focused on how to deploy capital as pricing becomes more competitive and rates soften across major lines.

According to the firm, strong operating performance, favorable prior-year reserve development, and healthy capital positions are giving insurers choices on whether to return more capital to shareholders or invest in growth, with a growing emphasis on cycle management and more deliberate underwriting.

The report also found that liability trends diverged from property, with liability premiums up 7.6% year on year, and property up 2.7%, while combined reinsurance premiums declined 6.7%. It noted that overall premium volume grew 2.8% in the first half of 2026 versus 13.2% a year earlier.

Howden Re added that underwriting choices matter more as pricing alone can no longer drive growth, and said combined ratios across its global composite continue to improve, even as forward estimates suggest some deterioration as softer conditions work through portfolios.

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