Bermuda’s reinsurers are increasing the amount of money they’re putting at risk for natural disasters like hurricanes, even as prices in the reinsurance market begin to ease. That’s according to a new report from Moody’s, the credit ratings agency.

The report shows that insurance companies based in Bermuda are more willing to cover large storm-related losses than they were just a few years ago. In fact, the total amount of exposure to US hurricanes among a group of leading reinsurers has grown by 58 per cent since 2018, with a compound annual growth rate of 6.7 per cent.

While the overall risk is going up, the amount of that risk compared to the size of each company has stayed steady. Reinsurers are adding risk in a way that matches their growth, rather than overstretching, the report suggested.

One Bermuda-based company, Arch Capital Group, stood out for taking on more hurricane risk. In contrast, another major Bermudian firm, Axis Capital, has stepped back from the property disaster market altogether. According to Moody’s, the moves demonstrate how reinsurers are making different bets depending on their strategies and how much risk they’re willing to take.

“Risk appetites are diverging,” Moody’s noted, pointing to Arch’s approach as indicative of firms willing to lean into peak perils where margins remain attractive.

This increase in disaster coverage comes at a time when prices for this kind of insurance are starting to flatten or even dip, after years of going up. While rates for higher-risk coverage are falling, demand remains strong, and many insurers are still holding onto tighter contract terms.

Moody’s said that even though rates are no longer rising as quickly, many companies still see strong potential for profits.