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Insurance Market
Allianz | Allianz Global Insurance Report 2025: Rising demand for protection
The Allianz Global Insurance Report 2025 indicates that the global insurance industry experienced robust growth of 8.6% in 2024, surpassing the previous year's 8.2% increase, with total premium income reaching €7.0 trillion. Life insurance led this expansion with a 10.4% rise, driven by higher interest rates and strong demand in North America and Asia, while health insurance grew by 7.0%, particularly in Asia due to low insurance penetration and evolving healthcare needs.
AM Best has upgraded the Long-Term Issuer Credit Rating of Fairfax Financial Holdings Limited and its subsidiaries, including Allied World Assurance Company Holdings, Ltd., citing improved earnings and enhanced underwriting performance. The Financial Strength Rating for Allied World's operating affiliates was raised to A+ (Superior), reflecting strong balance sheet strength, favorable business profile, and effective enterprise risk management.
Davies Group has secured £275 million ($370 million) in new senior credit facilities from Blackstone Credit & Insurance to accelerate its global M&A strategy, invest in generative AI and automation, and expand into new markets across North America, APAC, and EMEA. The improved credit terms reflect Davies' growing scale and diversified revenue base, with annual pro forma revenues expected to surpass £1 billion in 2025.
Helios Underwriting plc reported its 2024 preliminary results, highlighting a gross written premium of £100 million, reflecting a 10% increase from the previous year. The company achieved a combined ratio of 92%, indicating strong underwriting performance, and announced plans to expand its participation in Lloyd's syndicates to further enhance its market presence.
Hub International Ltd. Upgraded To 'B+' On Expect | S&P Global Ratings
S&P Global Ratings has upgraded Hub International Ltd.'s issuer credit rating to 'B+' with a stable outlook, reflecting the company's expected deleveraging and sustained strong operating performance. The upgrade acknowledges Hub's leading position in the middle-market insurance brokerage sector and its consistent financial results.
Moody’s improves Generali’s outlook to positive from stable
Moody’s has revised Assicurazioni Generali S.p.A.’s outlook from stable to positive while affirming its A3 Insurance Financial Strength Rating. This change follows the upgrade of Italy’s sovereign outlook to positive, acknowledging Generali’s strong market positions in Europe, diversified business lines, and solid financial metrics, including a Solvency II ratio of 210% at year-end 2024.
Novel Financial Holdings LLC has been established as an independent holding company to oversee insurance carriers that support managing general underwriters (MGUs). The company aims to generate superior returns through increased scale and diversification, combining fee income from insurance services with underwriting performance from its carriers.
Reinsurance Market
Howden Re's report on the 1 June 2025 property-catastrophe reinsurance renewals indicates continued rate moderation, with risk-adjusted excess-of-loss rates-on-line decreasing by 10% on average; loss-free programs saw reductions of 10–15%, while loss-affected programs experienced flat to 10% decreases. The market is transitioning from prior dislocation to a more disciplined environment, characterized by selective capacity deployment, increased capital inflows from traditional and ILS markets, and a focus on holistic underwriting strategies across program structures.
AM Best Assigns Credit Ratings to Peak Reinsurance North America Ltd.
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Peak Reinsurance North America Ltd. (Peak Re NA), with a stable outlook. These ratings reflect Peak Re NA's integration within the Peak Reinsurance Company Limited group, its strategic role in underwriting U.S. motor and casualty reinsurance business, and its contribution to the group's growth and diversification strategy.
Fidelis Insurance Group Sponsors New Herbie Re Ltd. Catastrophe Bond
Fidelis Insurance Group has successfully closed a $90 million catastrophe bond through its Herbie Re Ltd. program, marking the seventh issuance in the series. The Series 2025-1 Notes provide two years of collateralized reinsurance protection against a range of global perils, including North America named storms, earthquakes, wildfires, and European windstorms, with the risk period ending on June 7, 2027.
Palomar Holdings, Inc. Announces Successful Completion of June 1 Reinsurance Placement
Palomar Holdings, Inc. (NASDAQ: PLMR) successfully completed its June 1, 2025, reinsurance placement, securing approximately $455 million in additional earthquake coverage, bringing total earthquake protection to $3.53 billion and U.S. hurricane coverage to $100 million. Notably, the company reduced its hurricane event retention to $11 million from $15.5 million and maintained its earthquake event retention at $20 million, while also issuing a $525 million catastrophe bond through its sixth Torrey Pines Re issuance, exceeding the initial $425 million target.
Commercial Lines
Ford Recalls Nearly 1.1 Million Vehicles Over Rearview Camera Software Issue
Ford Motor Company is recalling nearly 1.1 million vehicles in the U.S. due to a software issue that may cause rearview camera images to delay, freeze, or not display, increasing the risk of a crash. The recall affects various 2021–2025 models, including the Bronco, F-150, Edge, Escape, Mustang, and several Lincoln vehicles. Owners will be notified by mail starting June 16, and dealers will update the software via over-the-air updates. This recall follows previous actions and a $165 million civil penalty related to similar rearview camera issues.
Inflation Impacting Workers Comp Medical Costs: WCRI
A recent study by the Workers Compensation Research Institute (WCRI) highlights the impact of inflation on workers' compensation medical costs across the United States. The 2025 edition of the WCRI Medical Price Index for Workers’ Compensation reveals that from 2008 to 2024, states without medical fee schedules experienced a median price growth of 40%, compared to 15% in states with fee schedules. Notably, in 2024, medical service costs ranged from 33% below the 36-state median in Florida to 172% above in Wisconsin, underscoring the significant variation influenced by state-specific regulations and the presence or absence of fee schedules.
U.S. Commercial Lines Insurance Market Remained Steady in 2024
Fitch Ratings reports that the U.S. commercial lines insurance market maintained stable underwriting performance in 2024, with a combined ratio of 97%, indicating profitability. However, premium growth decelerated to 4%, reflecting a slowdown in market expansion.
Emerging Risks & Technologies
Cyberattack Surge Creates Opportunity, Premium Rethink for Insurers
A recent surge in high-profile cyberattacks has prompted insurers like Munich Re and Chubb to reassess their premium strategies amid a rapidly expanding cyber insurance market. With global cybercrime losses reaching $9.5 trillion in 2024 and the cyber insurance market projected to grow to $16.3 billion in 2025, insurers are experiencing increased demand for coverage, especially following significant breaches such as the one affecting Marks & Spencer.
The second annual EY-IIF Global Insurance Risk Management Survey reveals that insurance Chief Risk Officers (CROs) are increasingly prioritizing operational and financial resilience in response to intensifying cyber threats, geopolitical tensions, and evolving regulatory demands. Key areas of focus include enhancing governance, cybersecurity measures, and critical business service frameworks to ensure continuity and adaptability in a complex risk landscape.
Geopolitical Tensions Lead to Increasing Risks for Shipping Sector Globally
Allianz Commercial's 2025 Safety and Shipping Review highlights escalating geopolitical tensions—such as U.S.-China trade conflicts and the expansion of a "shadow fleet" of tankers circumventing sanctions—as significant risks to global shipping. Despite these challenges, the industry achieved a record low of 27 large ship losses in 2024, down from over 200 annually in the 1990s, though concerns persist over potential large claims from traditional risks like fires and collisions.
Howden's 2025 credit and political risk insurance report
Howden's 2025 Credit and Political Risk Insurance (CPRI) report highlights the sector's resilience amid global uncertainties, noting a premium base of $49 billion across six product segments. Despite macroeconomic challenges, the CPRI market has consistently delivered strong underwriting results over the past decade, outperforming many other specialty lines.
Tokio Marine Group to launch GX business to support green
Tokio Marine Holdings has launched Tokio Marine GX (TMGX), a new underwriting business dedicated to providing specialist insurance and risk management solutions to businesses aiming to decarbonize their operations. Building upon GCube's expertise in renewable energy underwriting and Tokio Marine & Nichido Fire’s offshore marine offerings, TMGX will offer up to $500 million in coverage per risk and aims to become a leading underwriter in the green transition sector.
The Insurance Information Institute (Triple-I) has released a new issues brief highlighting how aggressive attorney advertising and third-party litigation funding (TPLF) are contributing to rising insurance costs. The brief notes that legal service providers spent over $2.5 billion on nearly 27 million ads in 2024, with TPLF enabling the expansion of mass tort litigation, thereby increasing claims frequency and settlement delays.
Trump’s Tariffs to Remain in Effect After Appeals Court Grants Stay
A federal appeals court has temporarily reinstated Trump's broad tariffs, pausing a lower court's ruling that deemed them unconstitutional under the International Emergency Economic Powers Act. This decision maintains the tariffs at approximately 15%, affecting various sectors, including insurance, which faces potential impacts on lines such as auto, marine, and political risk.
U.S. Cyber Insurance Premiums Decline Continues
Fitch Ratings reports that U.S. cyber insurance premiums declined for the second consecutive year in 2024, reflecting a softening market and increased competition. Despite the premium decrease, the sector maintained strong underwriting profitability, indicating that insurers continue to manage cyber risks effectively.
Will Workers’ Comp Benefit from ‘Most-Favored-Nation’ Drug Pricing?
A recent executive order aims to align U.S. prescription drug prices with the lowest prices paid by other countries, potentially impacting workers' compensation costs. While this could reduce expenses for high-cost specialty drugs like Pluvicto and Stelara, implementation faces challenges, including regulatory hurdles and industry opposition, making significant short-term effects on workers' comp unlikely.
Litigation & Mass Torts
Boeing Agrees to Resolve US Criminal Case Over 737 Crashes
Boeing has reached a tentative agreement with the U.S. Department of Justice to resolve a criminal case related to two fatal 737 Max crashes, potentially avoiding a trial scheduled for June. The proposed settlement includes over $1.1 billion in financial commitments: a $243.6 million fine, $444.5 million for a victims' fund, and $455 million to enhance compliance and safety programs. Additionally, Boeing's board is required to meet with victims' families. While some families support the resolution, others oppose it, arguing it allows Boeing to evade full accountability.
Lawsuits Aim to Hold Fossil Fuel Companies Responsible for Climate Change. Here’s A Look at Some
A recent article from Claims Journal discusses various global legal actions aiming to hold fossil fuel companies accountable for climate change impacts. Notably, a German court dismissed a Peruvian farmer's lawsuit against RWE, and the Dutch Supreme Court is reviewing a case involving Shell's carbon emissions. In the United States, multiple states and municipalities have filed lawsuits alleging that fossil fuel companies misled the public about the environmental impact of their products. These cases reflect a growing trend of using legal avenues to address climate change responsibilities.
People Moves
AXIS Makes Enhancements Within Global Markets Team Structure | AXIS Capital Holdings Limited
AXIS Capital Holdings Ltd (NYSE: AXS) has implemented several leadership changes within its Global Markets division to enhance underwriting and operational performance. Key appointments include Sarah Stephen as Head of Liability, Raj Brar as Head of Construction, and Sam Patrick as Head of Global Markets Transformation, with a new Head of Delegated Strategy position currently being recruited.
Core Specialty adds Patrick Gordon to its Board
Core Specialty Insurance Holdings has appointed Patrick Gordon, a Principal at Dragoneer Investment Group since 2018, to its Board of Directors, replacing Marc Stad, who served since the company's 2020 recapitalization. Gordon brings experience from previous roles at Google, Stripe, and Parthenon Capital, and is expected to contribute to Core Specialty's continued growth and strategic direction.
Liberty Mutual Global Risk Solutions Names Wesley Hyatt Global Chief Client Officer | LMG
Liberty Mutual Insurance has appointed Wesley Hyatt as Global Chief Client Officer for its Global Risk Solutions (GRS) division. In this expanded role, Hyatt will lead a globally connected client practice focused on understanding evolving client risks and ensuring clients and brokers fully benefit from Liberty Mutual’s suite of global products and services.
Jon Colello elected Chair of Reinsurance Association of America Board
Jon Colello, President of PartnerRe Ltd., has been elected Chair of the Board of Directors for the Reinsurance Association of America (RAA) during its 57th Annual Meeting on April 25, 2025. Joining him in leadership roles are Nic Berg of SCOR as Vice Chair and John Bender of Allied World as Secretary-Treasurer.
SiriusPoint appoints Philip Enan as Chief Strategy & Corporate Development Officer
SiriusPoint has appointed Philip Enan as Chief Strategy and Corporate Development Officer, where he will lead strategic planning and investment initiatives to support the company's long-term growth. Enan brings over 25 years of experience, including senior roles at Chubb, BMO Capital Markets, and Deutsche Bank.
United Risk has appointed Richard Christofer as President and Chief Commercial Officer, bringing extensive experience from his previous roles at AIG and Applied Underwriters. In addition, the company has expanded its underwriting and claims teams by adding 29 professionals, reflecting its ongoing growth and commitment to enhancing service capabilities.
Zurich alum returns as Head of Construction Professional Liability
Zurich North America has appointed Marty Andrejko as Head of Construction Professional Liability, effective May 27, 2025. Andrejko, who previously held leadership roles at Aon, Convex, Berkshire Hathaway Specialty Insurance, and AXA XL, brings over 35 years of industry experience, including a prior eight-year tenure at Zurich. In his new role, he will lead Zurich’s Construction Professional Liability underwriting team, focusing on portfolio growth and strategic execution within the Specialties business unit.
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