In a recent roundtable hosted by Intelligent Insurer, leaders from Howden Capital Markets & Advisory and Howden Re discussed the current state of the insurance market and its unique opportunities. The discussion featured Leo Beckham, Head of UK & Europe at Howden Capital Markets & Advisory; Sébastien Bamsey, Managing Director at Howden Capital Markets & Advisory; David Flandro, Head of Industry Analysis and Strategic Advisory at Howden Re; and Alexander Roth, Head of Capital & Operational Solutions International at Howden Re.
David Flandro began by highlighting that key market fundamentals are still strong. He noted that loss ratios remain low and returns on capital are attractive. According to Flandro, profitability has been sustained over several years even as there are ongoing concerns about softening prices, margin pressure, and capital volatility.
Alexander Roth addressed reports suggesting a significant drop in pricing within the sector. He stated that such claims “exaggerate the truth.” Roth explained that both reinsurance and casualty lines continue to be stable. However, he pointed out an increased demand for legacy solutions and products designed to stabilize earnings. Participants agreed that structuring is becoming an important tool for distinguishing between companies that excel and those that merely persist.
The conversation also covered mergers and acquisitions activity in the insurance industry. Sébastien Bamsey and Leo Beckham said strong profitability is supporting company valuations and drawing interest from private equity as well as private credit investors. They emphasized particular interest in capital-light business models focused on services rather than traditional risk-taking operations. As investments made during Lloyd’s “Class of 2020” mature, Bamsey and Beckham foresee another period of consolidation driven by strategic carriers seeking more diversification and greater scale.
Summing up the roundtable’s conclusions, participants said there is still a window of opportunity for innovation in the next phase of the market cycle. As one participant put it: “In softening cycles where organic growth decelerates, structuring and capital optimisation become the differentiator.” They believe firms willing to take bold steps may be best positioned to benefit from current market conditions.