Bermuda’s leading reinsurers reported exceptionally strong underwriting results in the first half of the year, helped by lower catastrophe losses, although a credit ratings agency warned that more competition is putting pressure on premiums.

Fitch Ratings said its group of seven Bermuda re/insurers recorded a combined ratio of 85.3 per cent in the six months to June 30. A combined ratio below 100 per cent indicates an underwriting profit.

The result improved from 90 per cent for the full year 2025, when the sector took heavier losses from catastrophes including the California wildfires.

Fitch said catastrophe losses added 2.8 percentage points to the group’s first-half combined ratio, compared with 6.7 points last year. The 2026 figure included losses from the Iran conflict, which Fitch estimated had generated $3 billion in insured industry losses.

The ratings agency’s Bermuda group comprises RenaissanceRe, Arch Capital Group, PartnerRe, SiriusPoint, Axis Capital, Everest Group and Hamilton Insurance Group.

All seven companies recorded solid underwriting profits in the first half, Fitch said. Their net-income return on equity was 15.7 per cent, down from 18.6 per cent for 2025 but still described as “very strong”.

The report said that the group also saw favourable reserve development, which improved its combined ratio by three percentage points. That compared with 2.2 points in 2025.

RenaissanceRe reported the greatest favourable development, at 8.2 percentage points, based on lower losses on property catastrophe events.

Hamilton was the only company in the group to record overall adverse development, at 1.4 points. Fitch said that Hamilton and other insurers booked more losses from the collapse of Baltimore’s Francis Scott Key Bridge in 2024, after estimated industry losses rose to $2.8 billion from $1.5 billion.

Fitch expects reserve development to stay favourable through 2026 and 2027, although it pointed to United States casualty business as an area of concern.

The report also saw a more difficult growth environment.

Net premiums written by the group fell 9 per cent in the first half, with four of the seven companies reporting lower premiums. Fitch said the decline was due to reduced prices and exposures, as well as non-renewals in a more competitive re/insurance market.

The comparison was also affected by the the lack of reinstatement premiums from the 2025 California wildfires.

Hamilton was the exception, with a 10 per cent increase in net premiums written driven by growth in casualty reinsurance and speciality insurance.

Fitch said competition would keep putting pressure on premium growth, despite underwriting discipline.

Shareholders’ equity across the group was broadly flat. Underwriting gains, investment income and equity-market gains were offset by more higher returns to shareholders and unrealised fixed-income losses after interest rates rose.

SiriusPoint reported the largest fall in shareholders’ equity, at 8 per cent, largely because of the redemption of preference shares. Arch and Everest recorded marginal declines after increasing common share buybacks, while the remaining companies posted modest gains.