Bermuda re/insurers maintain favourable results amid modest softening: Fitch
Fitch Ratings has reported that the eight Bermuda re/insurers it rates experienced declines in underwriting profitability and net earnings in H1 2025, though results remained strong overall, as premium growth slowed in a softening market environment.
Fitch’s group of eight Bermuda re/insurers, which includes Arch, AXIS, Aspen, SiriusPoint, Everest, Hamilton, RenRe, and Partner Re, posted a 95% combined ratio in H1 2025, including 11.3 percentage points of catastrophe losses, with about 10 percentage points resulting from the January California wildfires.
This result is up from 90.4% in 2024, when catastrophe losses were lower at 6.3 percentage points, mainly due to Hurricanes Milton and Helene.
“Underlying results weakened, with an accident-year combined ratio, excluding catastrophes, of 85.6% in H1 2025, up from 84.1% in 2024. Net income return on equity was a strong 14.9% in H1 2025, although reduced from 17.7% in 2024,” Fitch added.
At the same time, the rating agency has revealed that reserve releases benefited the Bermuda re/insurers’ combined ratio by 2 percentage points in H1 2025, compared to flat development in 2024.
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Fitch said that six of the eight Bermuda re/insurers reported overall favourable development in H1 2025, driven by property and specialty lines.
Development is expected to remain favourable in 2025/2026, although there are some areas of concern, mainly in the U.S. commercial casualty.
Meanwhile, net premiums written (NPW) for the group rose by only 4% in H1 2025, with three companies reporting declines as market competition persists.
“NPW growth for the group will continue to be constrained by competition, although the market is expected to maintain underwriting discipline,” Fitch concluded.
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