Reinsurers sustain stability as profits hold through 2026: S&P

Catastrophe losses reached about $80b in the first half of 2025.

Global reinsurers are forecast to maintain stable performance through 2026 despite softer pricing, according to S&P Global Ratings.

The sector is projected to post a combined ratio of 94% to 96% this year and 95% to 98% in 2026, with return on equity at 12% to 14% and 11% to 13%, respectively. 

Net investment yields are expected at 3.5% to 4.0%.

Catastrophe losses reached about $80b in the first half of 2025, mainly from US wildfires, earthquakes in Myanmar and Taiwan, and US storms. 

Meanwhile, US casualty lines remain a pressure point, with reinsurers adding $6 billion in reserves last year.

Despite these challenges, reinsurers’ capital strength and disciplined underwriting support stability. 

As of August 2025, 79% of S&P’s top 19 global reinsurers had a stable outlook, 16% positive, and 5% negative. 

Prices for short-tail lines are expected to fall by around 5% at the 2026 renewals, but ample capacity is likely to remain.