Bermuda re/insurer earnings jump as market growth slows: ABIR

Bermuda re/insurers’ net income surged 22.4% to $32.8 billion in 2025, even as top-line growth moderated to 4.6%, according to the Association of Bermuda Insurers and Reinsurers (ABIR).

The increase came as total equity across the ABIR membership climbed 16.6% to $207.7 billion, from $178.1 billion in 2024.

The market’s combined top-line measure reached approximately $197.5 billion, up 4.6% from $188.8 billion in 2024. That figure combines $172.1 billion of gross written premium from companies reporting on a non-IFRS 17 basis with $25.3 billion of gross insurance/reinsurance revenue from IFRS 17 reporters.

The contrast between top-line growth and earnings reflects a market that John Huff, CEO of ABIR, described as moderating rather than softening, with strong capitalisation allowing reinsurers to remain selective as pricing comes under pressure.

“Some reinsurers are stepping away from business they think may not be adequately priced,” Huff said, adding that companies have “the luxury of doing that because of their strong capitalisation levels and their ability to maintain discipline”.

Investment performance was another prominent feature of the results. Among non-IFRS 17 reporters, net investment income jumped 34% to $20.5 billion from $15.3 billion. IFRS 17 reporters recorded a 40.2% increase in net investment return, to $2.94 billion from $2.1 billion.

Huff linked that performance to the market’s capital strength, saying companies were “really leveraging that capitalisation for turning that into investment income”.

Insurance performance also strengthened. Among non-IFRS 17 reporters, the averaged combined ratio improved 10.6 percentage points to 84.2%, while the loss ratio fell 8.6 points to 57.8%.

For the IFRS 17 cohort, the insurance service result increased 21.6% to $3.5 billion. Its discounted combined ratio improved to 81.3% from 83.6%, while the undiscounted ratio edged down to 94% from 94.6%.

The results came despite the California wildfires in early 2025. Bermuda ultimately accounted for around 30% of wildfire losses, but Huff said the exposure was within companies’ catastrophe modelling and loss provisions.

The market’s ability to absorb those losses while increasing profitability comes as reinsurers navigate greater competition and moderating rates.

“Even as a market moderates in terms of top-line growth, we’re seeing very robust combined ratios,” he said.

For Huff, that reflects a market increasingly focused on managing the cycle rather than maximising premium volume, supported by capital levels that allow companies to step away when returns no longer meet their requirements.

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