Howden Re has released its 2025 half-year review of (re)insurer earnings, outlining changes in the reinsurance pricing cycle. The findings are presented in the company’s latest Business Intelligence report.
David Flandro, Head of Industry Analysis and Strategic Advisory, and Michelle To, Global Head of Business Intelligence at Howden Re, examined data trends ahead of the upcoming conference season and January 1 renewals.
“Insurers are reporting decreasing rating trends due to greater competition, signalling a shift in the market cycle,” said To.
“We’re past the pricing peak,” said Flandro. “Our data show how underwriters are responding to the hard market softening phase.”
According to Howden Re’s analysis, several themes have emerged for 2025. The industry is seeing increased competition for profitable business as rates change, marking a transition in the market cycle. Large catastrophe losses have been manageable so far this year, with (re)insurers posting strong returns even after significant events like the L.A. wildfires.
The report also notes that capital returns remain robust but highlights that future growth will depend on innovation and exposure rather than continued pricing increases. Underwriting strategies have become more targeted as carriers seek to deploy capital carefully and adjust portfolios amid heightened competition.
On the data side, U.S. insured catastrophe losses during the first half of 2025 reached their highest level in a decade. Despite ongoing strengthening in U.S. casualty lines, reserving continues to support overall profitability across the sector. The report emphasizes that access to current data is critical for navigating this stage of the reinsurance cycle.