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US and Bermuda reinsurers stayed profitable in 2025 as premium growth slowed
AM Best said the reinsurers posted a 16.8% aggregate return on equity in 2025 and expects subdued premium growth in 2026.
AM Best said a composite of seven leading US and Bermuda reinsurers remained underwriting profitable for a fifth straight year in 2025, even as the market saw a major slowdown in premium expansion. The findings are included in the agency’s latest Best’s Market Segment Report ahead of its broader review of the global reinsurance market.
The composite, which covers Arch Capital Group, Everest Group, General Re, Odyssey Group Holdings, PartnerRe, RenaissanceRe, and Transatlantic, delivered an aggregate net return on equity of 16.8% in 2025, matching 2024. AM Best attributed the results to continued underwriting performance, with investment income providing additional support in a higher interest rate environment, particularly in the US.
Premium growth cooled sharply, with gross premiums rising to less than 1.0% in 2025 from 11.7% a year earlier. AM Best said the decline reflected a more cautious approach by reinsurers as conditions soften, alongside an increased focus on underwriting discipline as attractive-return opportunities become less common.
Looking ahead, AM Best expects premium growth across the composite to remain subdued in 2026, citing continued acceleration of rate decreases in property reinsurance and slower price improvement in US casualty lines. The agency also said the composite’s combined ratio rose to 90.2 in 2025, a 1.7 percentage point deterioration from 2024, though achieved with lower catastrophe losses and increased favorable loss reserve development.