Analysts at Fitch Ratings see accelerating softening of rates impacting the results of a group of five Bermudian-based re/insurers.

In a peer credit analysis featuring Arch Capital, Ascot, Hamilton, RenaissanceRe and SiriusPoint, Fitch said capitalisation for the group was favourable.

The capital adequacy of this group, measured by Fitch Ratings’ Prism Global Capital Model, was “very strong” to “extremely strong”.

The analysts said the group’s combined ratios — a measure of underwriting profitability — deteriorated or stayed flat for each company in 2025 owing to higher catastrophe losses driven by the California wildfires, partially offset by increased favourable reserve development.

“Results are expected to be pressured in 2026 by continued weakening in underlying results in the softening market environment, although all companies are expected to maintain underwriting profitability,” stated the report, which was authored by analysts Brian Schneider and Tana Marcom.

The report notes that Arch’s financial performance and earnings score of “aa—” is better than that of its peers, as it has posted positive net income and underwriting profits throughout its 24-year history. It added that Arch benefits from very low combined ratios in its mortgage segment.

Fitch also pointed to the five companies’ diversified mix of business.

“The companies in this group write varying amounts of reinsurance and primary insurance business, diversified by geography and product,” the report stated.

“RenaissanceRe is effectively a pure reinsurer, although it also writes other property and casualty, and specialty business through delegated authority arrangements, which is primary insurance.

“The other companies write a more balanced book of re/insurance business. Arch also has sizeable other operations in the primary mortgage insurance business.”

The insurer financial strength ratings of this peer group vary. Arch is rated “AA–”, while Ascot and RenaissanceRe are each rated “A+”. Hamilton is rated “A–”.

Fitch rates SiriusPoint at “A”, upgraded from “A-” in February 2026 due to strong and improved earnings, driven by favourable operating results from solid underwriting profitability, and a reduced risk profile following a strategic repositioning of the portfolio.