In 2024, the top 19 reinsurers’ aggregate risk exposure rose 14%, but appetite for catastrophe risk has declined in 2025 as pricing softens.

Nonetheless, most reinsurers continue to grow their property catastrophe books in line with capital increases. S&P estimates that, in aggregate, the top 19 reinsurers’ exposure represents 20% of S&P Global Ratings-adjusted TAC, down slightly from 21% in 2024.

S&P said global reinsurers remain in a strong position, with capital at record levels and healthy underwriting margin prospects. While conditions have started to soften and volatility remains high, reinsurers are expected to defend their positions. Following several years of positive pricing corrections, property catastrophe is likely to remain attractive for reinsurers in 2026.

Given the uncertain and volatile environment, S&P expects reinsurers to demonstrate prudent risk management when expanding their property catastrophe portfolios in 2026.

At the sector level, S&P believes capitalisation can withstand severe annual industrywide losses above $300 billion, noting that losses of this magnitude are unlikely to reduce capitalisation below the 99.99% confidence level.

S&P also highlighted the resilience of its sample, stating that all 19 reinsurers would sustain their capital adequacy in 2025 even if aggregate losses reached a one-in-50-years stress scenario.

Sachin Bhojani, credit analyst at S&P Global Ratings, said, “We believe the top 19 global reinsurers continue to have sound earnings and capital buffers to withstand severe stress before capital would be affected. Even though losses from the California wildfires totaled $40 billion, we expect 50% of the annual catastrophe budget will be available over the remainder of the year.”

The report noted that the industry faces headwinds from claims inflation, rising U.S. casualty claims, increasing climate variability, and financial market volatility. However, global reinsurers’ robust capital adequacy and solid margins provide some protection against major shocks, including natural catastrophes.

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H1 2025 saw the structuring of 56 catastrophe bonds with an issuance total of $17 billion, matching the full-year 2024 total in just six months.

Meanwhile, average deal sizes increased, with H1 2025 transactions averaging $302 million, a 12% rise compared to H2 2024.

Notably, catastrophe bond issuance surpassed $21 billion during the most active 12-month period in ILS history. At the same time, sidecar capacity increased to an estimated $17 billion across both property and casualty lines.

According to Aon, sidecars continued to grow due to their relatively high underlying margins, and the introduction of the casualty sidecar product now accounts for approximately 8% of the overall sidecar market.

Richard Pennay, CEO of Aon Securities, said, “Driven by higher building costs, evolving weather trends and the push to close the protection gap, cedents are increasingly seeking coverage beyond what is available in the traditional reinsurance market.

“With the uncorrelated nature of catastrophe bonds, and investors achieving double-digit returns, the space continues to demonstrate its value and outpace growth in other areas of the insurance industry.”

Elsewhere in the report, Aon highlighted that insurer participation in the catastrophe bond market has increased significantly, with insurers now accounting for 58% of issuances as regulatory and capital requirements drive them toward alternative risk transfer solutions.

The market remains highly concentrated regionally, with 93% of new bonds covering North America, reflecting investor confidence in the region’s risk models.

Within this, Florida-focused issuances rose to $5 billion, a 46% increase, demonstrating strong investor confidence in peak-zone catastrophe protection.

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Admitted direct written premiums dropped 2.3% to $7.1 billion in 2024, signalling a turning point for the sector.

The QCC interprets this decline as a reflection of shifting market dynamics. Market concentration remains high, according to QCC’s analysis.

In 2024, the top 30 carrier groups accounted for over 90% of admitted direct written premiums, and the five largest carriers controlled more than 30% of the market.

Leading insurers, including Chubb, Travelers, and Fairfax, each held more than 5% market share, with Chubb in the lead at 8%.

While traditional multiline insurers dominate the market, QCC notes that cyber-focused managing general agents (MGAs) such as Coalition, Resilience, and At-Bay are steadily increasing their presence. However, much of the premium for these MGAs is underwritten by other carriers and therefore is not fully reflected in NAIC data.

The QCC report also underscores the overall size and composition of the market. While admitted premiums total $7.1 billion, QCC’s Global Market Report (GMR) estimates that including alien insurers outside NAIC reporting brings the total closer to $10.5 billion. Some of these figures encompass lines beyond pure cyber insurance, including Technology Errors & Omissions coverage.

Profitability remains robust for the largest carriers. The five leading insurers posted a collective loss ratio of 41.8% in 2024, according to QCC.

Premium allocation varies by product line: The Hartford leads in endorsements with a 26% share, Chubb dominates primary coverage, and Starr holds a strong position in surplus lines.

QCC notes that some carriers, such as Arch, spread their business across multiple segments, while others—including At-Bay, Fairfax, and The Hartford—focus on specific areas of specialisation.

By documenting the first decline in reported premiums in six years, the QCC UCIM highlights the evolving dynamics of the U.S. cyber insurance market.

The report emphasises the balance insurers are striking between growth, underwriting discipline, and profitability as they respond to increasingly complex cyber risks and a competitive marketplace.

“The first-ever decline in top-line NAIC-reported premium is a clear indicator that the U.S. cyber insurance market has reached an inflection point,” added Daniel Kasper, CEO of QCC.

“This shift reflects both slower growth in the underlying policyholder base and underwriting discipline, as carriers balance growth with profitability and respond to changing risk conditions in a still soft pricing environment.”

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The partnership combines MIS’s rapid and precise military-grade intelligence analysis with Eagleview’s high-resolution aerial imagery captured before and after catastrophic events.

Together, the organisations aim to provide clients with comprehensive insights that support faster and more informed decision-making following natural disasters.

As part of this collaboration, MIS clients will have access to Eagleview’s extensive library of aerial imagery, including both historical and future captures.

This coverage spans a wide range of perils, including hurricanes, tornadoes, flooding, and wildfires, enabling MIS analysts to deliver post-event assessments with improved accuracy and efficiency.

Eagleview clients will gain access to the GEO platform, which includes a historical archive of over 200 global events.

Within this secure environment, clients can integrate their own portfolio data and benefit from verified analysis provided by the MIS team, including exposure, claims, and building-level assessments. These insights are designed to support timely, evidence-based claims decisions shortly after an event.

Through this collaboration, both organisations aim to provide the insurance industry with a more integrated approach to understanding and responding to natural catastrophes, enhancing risk assessment and operational response capabilities.

Forbes McKenzie, CEO and Founder of MIS, added: “We could not be more delighted to be collaborating with Eagleview. This transformative partnership further establishes GEO as the go-to disaster response platform for carriers and matches the best intelligence on the market with the best aerial imagery on the market.

“Ultimately, this provides the insurance community with a one-stop shop to understand how their business has been affected and inform their decision-making in the immediate aftermath of any catastrophic event in North America.”

Over the past year, MIS has produced detailed intelligence reports on 25 catastrophic events in North America and monitored an additional 42 events, encompassing a variety of perils including Hurricane Helene, Hurricane Milton, the May 2025 tornado outbreak, and the Los Angeles wildfires.

During the same period, Eagleview captured aerial imagery covering 34,000 km² across North America. A total of 60 flights documented the impact of 26 distinct catastrophic events, spanning hazards such as hurricanes, tornadoes, wildfires, and other natural disasters.

David Bairstow, SVP and General Manager of Eagleview, commented: “We’re truly thrilled to be working with MIS. Bringing these leading market offerings together will deliver major benefits for our users.

“This move signals a major evolution in how both organisations serve the insurance marketplace, with the shared goal of continuing to give carriers the information they need, when they need most it, as the impact North American
catastrophes worsen year-on-year.”

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Total revenues for the quarter reached $219.1 million, up from $130.1 million in Q2’24. This included net earned premiums of $70.6 million and net investment income of $12.8 million, compared with $52.2 million and $8.7 million, respectively.

Total expenses stood at $198.8 million, an increase from $134.4 million.

In Q2’25, Accelerant had 248 Members, up from 186, with the number of MGA operations members increasing to 47 from 44.

For the first half of 2025, the company posted a net income of $20.9 million, a notable improvement from a net loss of $7.1 million in H1’24.

Total revenues were $397.1 million, up from $258.2 million. Net earned premiums rose to $133.6 million from $96.2 million, while net investment income increased to $25 million from $16.6 million.

Total expenses in H1’25 amounted to $359.3 million, up from $250.5 million.

In July 2025, Accelerant also announced the pricing of its upsized initial public offering, expecting to raise $426 million for the firm.

Jeff Radke, Co-Founder and CEO, said, “Accelerant’s first quarter reporting as a public company was one of the strongest in our history — more Members wrote more business for more risk capital partners than ever before.

“We believe our initial public offering validated the durability of our platform and equipped us with resources to extend industry-leading growth as we build the world’s preeminent two-sided specialty insurance risk exchange. Over the last 12 months, Accelerant generated $3.8 billion of Exchange Written Premium, including $1.1 billion in the second quarter alone — a 42% year-over-year increase.

“Our growth algorithm is straightforward: add more high-quality Members, expand specialty products for more small and mid-sized businesses, and attract more capital from risk partners.

“If we continue to do that, we believe the rest will take care of itself. Our goal is clear: to be the rails on which specialty insurance runs.”

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A surge in investor interest, both existing players and new entrants, has funnelled significant capacity into the sector, particularly in the upper layers of reinsurance programmes.

“This increased capacity supporting new and upsized transactions has resulted in spread tightening, benefitting sponsors, although expected returns are still attractive to investors,” Fitch stated.

The active ILS sector has more than compensated for reduced allocations from some traditional reinsurance carriers, the report also highlighted.

Catastrophe bonds issuance reached an unprecedented USD16.8 billion in the first half of 2025, a new half-year record and just below the full-year issuance record of USD17 billion in 2024.

This period included three catastrophe bonds of USD1 billion or more – Everest (USD1 billion), Citizens (USD1.525 billion), and State Farm (USD1.55 billion) with the largest single catastrophe bond ever issued. Total catastrophe bonds outstanding reached a record USD54.3 billion.

Total alternative capital reached over USD115 billion, also a record high, the report stated.

Beyond catastrophe bonds, the market has also benefitted from growth in sidecars. These vehicles, which allow investors to take on a portion of a reinsurer’s risk, grew in property catastrophe and in non-catastrophe, including casualty risk.

Looking ahead, Fitch expects continued growth in the alternative reinsurance capital market in 2026, with strong supply from investors, as loss activity has been limited, and significant demand from sponsors, as they manage increased risk.

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Bode will continue as Head of Reinsurance at HDI Global while also taking on leadership of the Corporate & Specialty Lines department within Talanx Group Reinsurance, serving in a dual capacity.

In this role, she will maintain her current reporting line to Dr. Stefan Pasternak, CFO of HDI Global, and will additionally report to Oliver Grabau, Head of Talanx Group Reinsurance.

This consolidation under a single leader strengthens alignment in reinsurance purchasing across the Group, supporting streamlined operations and coordinated strategy execution, while further connecting HDI Global to the reinsurance market.

Stephanie Bode succeeds Rainer Fischer as Head of Reinsurance at HDI Global in the Finance Department under CFO Dr. Pasternak. Fischer, who has served in the role for nine years, will remain with the company as an advisor.

Within Talanx Group Reinsurance, Bode takes over from Antje Pfitzner, who will lead Group Reinsurance Retail & Group Protection & Counterparty Risk Management.

Prior to assuming her dual responsibilities, Bode oversaw market management for Continental Europe (excluding Germany), South Africa, and Japan in David Hullin’s executive department at HDI Global.

“Stephanie is a proven expert in the international insurance and reinsurance markets and knows our portfolio inside out. Together with her teams, she will negotiate the terms for HDI Global in reinsurance purchasing. I am very pleased that we have been able to recruit her for the important role as Head of Reinsurance at HDI Global and wish her every success in her new position,” commented Dr Pasternak.

“Aligning the teams under one leadership, will help us to reduce duplication, enhance market presence and ensure a seamless communication across our global operations. I am confident that Stephanie will master this new challenge in her dual role with great dedication and success, and I wish her all the best in her extended role.”

“With Stephanie in her expanded role, we will be able to respond more quickly and flexibly to market changes in reinsurance purchasing – whether in terms of contract conditions or pricing. Through improved coordination, we can achieve even better results and strengthen our market position,” commented Grabau.

“I would also like to express my sincere thanks to Antje Pfitzner for her many years of leadership and outstanding work. I wish her continued success in her new role,” further added Grabau.

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The report found that organisations that regularly engage in tabletop exercises and scenario-based breach response drills are 13% less likely to experience a material cyber event than those that do not.

In 2025, cyber incident response planning ranked as the fourth most effective control in decreasing the probability of a breach-related claim, behind endpoint detection and response (EDR), logging and monitoring, and cybersecurity awareness training and phishing testing.

Tom Reagan, Global Cyber Practice Leader at Marsh, said, “Marsh has long advocated proactive cyber incident response planning as a tool to help organisations effectively and efficiently respond to and recover from a cyberattack.

“What our latest research confirms is that thoughtful planning also drives secondary benefits like positive security behaviours and strong control implementations, which help build more organisational resilience and reduce breach incidents.”

The report also highlighted the importance of effectively deploying and managing other key cybersecurity controls. It found that each 25% increase in EDR deployment across workstations and laptops was associated with a further 10% reduction in breach likelihood. Similarly, a multi-factor authentication (MFA) deployment resistant to phishing schemes was linked to a 9% lower breach likelihood than MFA that is not.

Scott Stransky, Head of Marsh McLennan’s CRIC, added, “Our findings emphasise that simply deploying key cybersecurity controls is no longer enough—these tools must be properly managed and comprehensively used.

“By drawing on our insights, organisations can make informed decisions to strengthen their security frameworks and help reduce their exposure to cyber risks.”

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In his new role, Anderson will be responsible for leading and overseeing strategic advisory, operational efficiency, and client service delivery across broking activities for Professional Services in the GBC.

He joined Aon in February 2023 to lead the company’s Design and Construction Professional Indemnity (PI) team in the GBC.

Prior to that, Anderson spent almost two decades at Morgan Sindall, most recently serving as Group Insurance Manager.

John Brosnan, Head of Financial & Professional Services Group, said, “This appointment underscores the growing momentum within Aon’s broking capabilities and reflect our commitment to the 3×3 strategy, driving smarter, faster, and more scalable solutions through increased investment in the future of risk and human capital.

“I am excited to work with Tom in his new role, and I am confident his expertise and professionalism will enhance Aon’s delivery of industry-leading client solutions.”

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In a new report, the rating agency noted that reinsurance leverage for the US L&A industry reached approximately 328% at year-end 2024, up around seven percentage points from the previous year.

AM Best explained that this trend has been driven by “the higher interest rate environment fueling annuity growth that is heavily reinsured offshore,” particularly in Bermuda and the Cayman Islands.

These jurisdictions have reportedly gained popularity due to “the stable economic environment and regulatory landscape, as well as political stability, access to legal and financial talent, and flexible accounting regimes.”

According to AM Best, the ability of offshore reinsurers to choose between regulatory reporting frameworks, ranging from US GAAP to IFRS 17, local statutory requirements, or BCAR, has also made these markets attractive.

This flexibility can result in cedents taking reserve credits that diverge from the reserves held by the reinsurers themselves. AM Best stressed that the increased use of reinsurance persists across both rising and declining yield environments, underscoring its durability as a capital management tool.

However, the report also emphasised the importance of robust enterprise risk management (ERM) frameworks, particularly as carriers grapple with asset-liability mismatches and product risks through different underwriting and interest rate cycles.

AM Best said competition for capital solutions has intensified alongside the “substantial growth in the US annuity market,” with private equity-backed insurers and investment managers increasingly leveraging offshore reinsurance, sidecars, and asset-intensive transactions to boost capital efficiency.

It also flagged activity in longevity swaps and retrocession strategies, noting that “the offshore reinsurance model continues to be profitable,” while warning of concerns tied to rapid growth and evolving regulation.

AM Best stated it is “continuously monitoring concerns over the transparency of capital adequacy, composition of investments, and, most of all, maintaining financial stability while protecting policyholders.”

“AM Best will continue to evaluate the emerging trend in reinsurance,” the agency concluded, “with a much greater focus on how transactions will be structured.”

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