Global reinsurance market conditions remain difficult as abundant capacity and strong competition pressure pricing across most lines, according to Fitch Ratings.
Global reinsurance rates are declining in many segments, while policy terms and conditions have become less restrictive. Fitch still expects reinsurers to generate favorable returns during 2026.
Non-life underwriting results improved sharply in the first half of the year. The 18 reinsurers tracked by Fitch reported an aggregate reinsurance combined ratio of 86.1% in 1H26, down from 92.7% in the same period of 2025.
Lower catastrophe losses drove much of the improvement. Premium trends moved in the opposite direction. Non-life reinsurance net premiums declined 6% year over year in 1H26 as softer market conditions accelerated.
The decline points to growing competitive pressure after several years of firmer pricing across property catastrophe and other reinsurance lines. Life and health reinsurance produced stronger earnings.
The L&H operations followed by Fitch reported a 12% increase in pre-tax income during 1H26. Net revenue rose 9.5% over the same period.
Fitch described L&H reinsurance market conditions as favorable. The segment also gives global reinsurers earnings diversification from property and casualty business, where pricing pressure has become more visible.
Bermuda-based reinsurers delivered some of the strongest results in Fitch’s sample.
The 7 Bermuda (re)insurers tracked by the agency posted an aggregate combined ratio of 85.3% in 1H 2026. Every company in the group reported an underwriting profit. Net income return on equity reached 15.7%.
That figure remained strong, though it fell from 18.6% in 2025.
The first-half results show a market where underwriting profitability remains healthy even as commercial conditions soften. Lower catastrophe losses helped protect margins, but falling premiums and broader price erosion point to tougher competition ahead.
Fitch expects returns to remain favorable through 2026, with L&H earnings providing additional support as non-life pricing becomes less firm.
