Gallagher Re Half-Year 2025 Reinsurance Market Report

The Gallagher Re Half-Year 2025 Reinsurance Market Report provides an analysis of the capital and profitability trends within the global reinsurance industry. It reports that global reinsurance dedicated capital reached USD 805 billion, marking a 4.8% increase compared to the previous year. The report indicates that while return on equity (ROE) has declined from the previous period, it remains strong, with projections suggesting a full-year ROE of 17-18%. The report also highlights that the combined ratio has increased, driven by a rise in natural catastrophe losses and expense ratios. The document details the performance of the INDEX companies, which represent a significant portion of the industry’s capital, and notes that retained earnings were a key driver of capital growth. Additionally, it discusses the impact of natural catastrophes on the financial results, particularly referencing the California wildfires. Overall, the report outlines the current state and future outlook of the reinsurance market, emphasizing the industry's resilience amid challenges.