Dec 21-27, 2025

Insurance Market

U.S. P/C Posts $35B YTD Underwriting Gain; By-Line Premium Growth Revealed
AM Best reports that U.S. property and casualty insurers achieved a $34.9 billion net underwriting gain through the first nine months of 2025, a sharp improvement from $3.7 billion the prior year, driven by a 94.0 combined ratio, 7 percent growth in net premiums earned, reduced catastrophe impacts, and $18.0 billion in favorable reserve development. Direct premium growth slowed to 5.6 percent with double-digit increases in commercial auto liability and other liability lines, while pretax operating income rose 52 percent to $102.4 billion amid higher investment income, though net income fell due to lower realized capital gains.

Warren Buffett and Private Equity Both Love Insurance. The Similarities End There. - WSJ
Warren Buffett and private-equity firms both favor investments in insurance companies for their ability to generate float, which provides low-cost capital for further investments. However, their approaches diverge significantly, with Buffett's Berkshire Hathaway emphasizing long-term underwriting discipline, conservative reserving, and permanent capital for patient growth, while private-equity owners often prioritize short-term cost-cutting, aggressive premium growth, and leverage to maximize returns before exiting, leading to differing risk profiles and outcomes.

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Reinsurance Market

Bermuda P&C re/insurance sector net income increased 22.5% in 2024: BMA - Reinsurance News
Bermuda's international property and casualty re/insurance sector reported a 22.5% increase in net income to $30.9 billion in 2024, driven by a 5.4% rise in net written premiums to $72.6 billion and a 5.6% increase in net earned premiums to $70.7 billion, according to the Bermuda Monetary Authority. Despite a higher combined ratio of 79.6% and elevated claims from global catastrophes exceeding $130 billion, profitability improved through tighter pricing, better underwriting, increased retentions, and total assets growing 7.2% to $338 billion.

Reinsurers face pressure on growing top-line and maintaining margin in 2026: Autonomous
Autonomous Research reports that reinsurers will face increased pressure in 2026 to achieve top-line growth while maintaining margins amid a softening pricing cycle, excess capacity buildup, and the absence of major capital depletion events. Despite these challenges, low but positive premium growth is expected alongside solid ROEs averaging 17.8 percent, with earnings expansion moderating to low single digits as the focus shifts from ROE growth to defense in a competitive environment.

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Litigation & Mass Torts

Court Ruling Could Help Shed Light on Owners of Litigation Funders, Medical Clinics
A U.S. 11th Circuit Court of Appeals ruling upheld the Corporate Transparency Act, requiring certain corporations to report beneficial owners to the U.S. Treasury, which could assist insurers in identifying hidden owners behind litigation funders and medical clinics involved in auto accidents and fraud. However, the non-public nature of the reports, numerous exemptions, and complex corporate layering limit its impact, leading experts to advocate for more state-level disclosure laws similar to those in Georgia and other states to enhance transparency in litigation financing.

J&J Vows Appeal After Jury Hits it With $1.5B Talc Cancer Award
A Baltimore jury ordered Johnson & Johnson and its subsidiaries to pay over $1.5 billion to a woman who claimed asbestos in the company's talc-based products caused her peritoneal mesothelioma, marking the largest award against J&J for a single plaintiff. The company vowed to appeal the verdict, calling it egregious and unconstitutional, while maintaining its products are safe and asbestos-free amid over 67,000 similar pending lawsuits.

Twice Injured Firefighter Loses Second Workers' Compensation Claim
A Delaware firefighter, Corey Ferrell, lost his workers' compensation claim for a 2023 back injury after courts ruled it a recurrence of a 2015 injury he had settled with a lump-sum payment that released the original insurer from further liability. The Delaware Supreme Court affirmed the decision, finding no distinct aggravating event in the 2023 incident and holding that recurrences remain the responsibility of the initial carrier rather than the new employer's insurer.

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Emerging Risks & Technologies

CEO of Previsico says 2026 will be a pivotal year for flood insurance - Reinsurance News
Previsico CEO Jonathan Jackson describes 2026 as a pivotal year for flood insurance, driven by technological advancements in real-time data ingestion, AI-driven modeling, and system interoperability that will enhance predictive accuracy, early warnings, and proactive risk management. These developments will enable insurers to shift from reactive claims handling to integrated resilience strategies through strategic partnerships and advanced analytics, addressing escalating flood losses amid abundant but complex environmental data.

Cyber risk to grow more systemic in 2026 as digital dependencies deepen: Coalition - Reinsurance News
Coalition executives predict that cyber risk will become more systemic in 2026 due to deepening digital dependencies, shifting from isolated incidents to correlated losses through supply chains, cloud infrastructure, shared vulnerabilities, and evolving privacy regulations. Insurers and reinsurers must enhance underwriting discipline, aggregation modeling, and innovative coverage to address business interruption, wrongful collection claims, and supply chain disruptions while maintaining profitability in a softening market.

Foreign Made Drones Will Be Banned in the U.S.
The U.S. Federal Communications Commission has banned imports of new models of foreign-made drones and critical components, primarily from Chinese manufacturers like DJI and Autel, citing national security risks including unauthorized surveillance and data vulnerabilities. This move prevents FCC approval for new drone sales in the U.S. while allowing existing devices to continue operating, aligning with broader efforts to promote domestic drone manufacturing and reduce reliance on foreign technology.

Mosaic increases cyber capacity to USD$25M in Canada - Mosaic Insurance
Mosaic Insurance is increasing its cyber-risk capacity in Canada to USD$25 million (CAD$40 million) per risk effective January 1, 2026, more than doubling the previous USD$10 million limit to align with levels in most other jurisdictions and address rising demand across all provinces. This expansion closes a market gap where most domestic carriers were capped at lower limits, providing greater flexibility for brokers and clients in designing resilient cyber programs amid lagging Canadian market capacity compared to the UK and US.

The fifth consecutive year: Global insolvencies set to hit a record high through 2026 | Allianz Trade in Hong Kong
Allianz Trade forecasts global business insolvencies to rise by 6 percent in 2025 and 5 percent in 2026, marking the fifth consecutive year of increases and reaching 24 percent above pre-pandemic levels, with North America and Asia driving the surge including significant growth in the US and China. The trend poses risks to 2.1 million jobs and highlights vulnerabilities in sectors like Services, Retail, and Construction, emphasizing the need for enhanced credit risk management amid low growth and tighter financing conditions.

The Rise of Deepfake Cyberbullying Poses a Growing Problem for Schools
Schools across the U.S. are grappling with a surge in students using AI to create sexually explicit deepfakes from classmates' images, leading to severe trauma, viral spread, and incidents like a Louisiana middle school case where two boys were charged under a new state law and a victim was expelled after a fight. With at least half the states enacting 2025 laws targeting generative AI deepfakes, reports of AI-generated child sexual abuse images skyrocketing to 440,000 in early 2025, and experts criticizing schools' inadequate policies, the issue underscores the accessibility of deepfake tools and the need for better parental discussions and response strategies.

Three Top P/C Insurers Account for Most of Insurance AI Patents
State Farm, USAA, and Allstate account for 77% of all AI patents filed by insurers since 2014, with property/casualty carriers holding 89% of the total and focusing primarily on claims, underwriting, and a surging share of generative AI applications from 4% to 31% by October 2025. This patent activity, led by a handful of U.S. firms leveraging telematics and sensor-based systems, signals concentrated innovation in P/C insurance, with emerging agentic AI and expected increases in 2026 filings for system-level designs in high-impact areas like underwriting and claims.

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People Moves

Chubb Appoints John DePeters as Head of Commercial Insurance and Specialty, Overseas General Insurance
Chubb has appointed John DePeters as Executive Vice President and Head of Commercial Insurance and Specialty for Chubb Overseas General Insurance, effective January 1, 2026, where he will be based in London and lead the global expansion and performance of middle market, small commercial, and specialty lines portfolios. DePeters, who brings over 13 years of experience at Chubb including recent roles as Chief Underwriting Officer for North America Small & Lower Midmarket and various positions in Asia Pacific and cyber underwriting, will focus on leveraging multi-line capabilities, analytics, and technology to drive growth and profitability.