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Reinsurance at ‘critical inflection point’ as record capital tests underwriting discipline: AM Best
AM Best says record capital is intensifying competition and cutting property pricing as reinsurers weigh whether underwriting discipline can hold.
- A new Best report warns the Global Reinsurance segment is at a "critical inflection point," as intensifying competition raises questions about whether underwriting discipline will hold or irrational competition will emerge.
- Strong earnings since 2023 have pushed capital to record levels, pressuring pricing discipline particularly in property lines where United States placements saw reductions estimated at 15% to 20% in recent renewals.
- Casualty reinsurance now represents a primary strategic concern, as analysts question whether firms can preserve profitable discipline or if irrational competition will trigger a traditional soft market cycle.
- Best will host its annual Reinsurance Market Briefing at the Hotel Hermitage in Monte Carlo on Sept. 6, 2026, during the Rendez-Vous de Septembre, offering industry perspectives ahead of bilateral meetings.
- Michael Lagomarsino, senior director at Best, noted that if pricing integrity holds despite record capital, the industry may undergo meaningful evolution; however, history suggests fundamental supply and demand dynamics remain persistent.
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Reinsurance at ‘critical inflection point’ as record capital tests underwriting discipline: AM Best
A new AM Best report has warned that the global reinsurance segment is at a “critical inflection point”, with strong earnings since 2023 pushing capital to record levels and intensifying competition, particularly in property, raising questions over whether underwriting discipline will hold or irrational competition will emerge, leading to another traditional soft market cycle. The rating agency’s new report, Global Reinsurance at an Inflection P…
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