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US fronting insurance premiums rise 17% in 2025 despite market softening
Fronting’s gross written premiums topped $22 billion in 2025, and core activity was still growing around 15% into early 2026, excluding three company-specific pullbacks.
Reinsurance News reports that the US fronting insurance sector outpaced the broader commercial insurance market in 2025, with gross written premiums up 17% to exceed $22 billion, according to Conning’s 2026 Fronting Sector Confronts a Softening Market report.
The report said growth cooled from 26% in 2024, while the total commercial lines industry expanded about 5%. Conning added that core fronting activity stayed solid into early 2026, running at roughly 15% growth when excluding three company-specific pullbacks.
Conning characterized the market as moving from rapid expansion to maturation, noting many fronting carriers were created during hard-market conditions and have not operated through a sustained soft market. It said long-term viability will depend less on access to rated paper and more on underwriting oversight, operational depth, reinsurance credit controls, claims handling, and capital support.
Underwriting and reserve pressures remain key concerns, particularly in casualty lines. The report highlighted that other liability grew 32% in 2025 to become 29% of direct fronted premiums, and that other liability together with commercial auto accounted for 46% of fronted premium, a concentration it tied to developing adversely accident-year loss ratios across the past seven accident years.