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Released twice a year, the Reinsurance Market Report gives in-depth analysis on the size and performance of the reinsurance industry, based on the 'Gallagher Reinsurance INDEX' group of companies. It provides an up-to-date picture on the global reinsurance industry's capital position and on reinsurers' profitability.
Additionally, it provides Gallagher Re's expectations for industry capital levels and reinsurers' profitability for the year ahead. The Reinsurance Market Report is well recognised and respected throughout the reinsurance industry.
Key findings from this report
- Global reinsurance dedicated capital totaled USD805 billion at half-year 2025, an increase of 4.8% versus the restated full year 2024 base. Growth was driven by both the INDEX companies and non-life alternative capital
- Albeit still at historically strong levels, Gallagher Re's in-depth analysis of a subset of 16 reinsurers shows the reported and underlying combined ratios increased to 87.5% (2024 HY: 84.6%) and 94.7% (2024 HY: 94.2%) respectively
- The reported ROE remained strong at 17.7%, albeit lower than 19.6% at 2024 HY. The underlying ROE suffered (12.6% vs 15.2% at 2024 HY) from various (partly one-off) factors not related to P&C reinsurance underwriting or investment income. The underlying underwriting margin reduced by 0.5ppts, mainly driven by excess capital accumulation
- Reinsurers are well positioned to maintain strong profitability in 2025. Assuming a 'normal' level of natural catastrophe losses, we expect an underlying ROE of 13-14% and a headline ROE of approximately 17-18%1 for the full year, both significantly above the industry's cost of capital
- Supported by continued strong profitability, traditional reinsurance capital is on track to increase by roughly 8% in 2025. The reinsurance industry continues to be supported by significant capital buffers which can absorb potential sources of volatility
