Q1 2025 State of the Market: Bermuda Casualty

At Price Forbes Bermuda, we’ve seen a clear shift in Q1: we’re now regularly brought in at the renewal planning stage, working in tandem with domestic and London markets to build smarter placement strategies. The “last resort” narrative is fading. In its place? A market that’s collaborative, agile, and ready to respond when others can’t. 

Here’s what we’ve seen so far this year. 

Market Update & Emerging Trends

Submission activity increased month-on-month throughout Q1, with a noticeable uptick in last-minute requests driven by domestic market retraction. More mid-market insureds are now turning to Bermuda for solutions they previously wouldn’t have considered. 

We’re also tracking several broader trends: 

• Habitational Risks are under pressure, experiencing some of the sharpest premium increases across the industry. Bermuda has proven a helpful backstop here, filling capacity gaps as domestic players reduce exposure. 
  We’re actively working with markets to open up even more capacity in this space. 

• Group Captives are gaining momentum, particularly for auto-exposed insureds, as clients seek alternative risk transfer structures to manage pricing volatility. 

• Punitive Damages (PD) are generating more broker interest. While the market dynamic is relatively unchanged, new options like the Mitsui Sumitomo/Magna Carta facility have entered the scene. Despite this, PD coverage remains underutilized in the middle market. 

• And in the spirit of unexpected trends: we’ve never seen a Chicken Farm account in Bermuda, until we saw two in the space of two weeks. Enough said. 

Here’s a closer look at key product lines: 

Construction

• The US market is continuing to reduce line sizes, creating opportunities for Bermuda to step in with quota share layers that offer cleaner parity in coverage, especially as US carriers remain on proprietary forms.
• Submissions have increased, driven in part by cooling interest rates and financing restarting stalled projects.

Transportation

• The NS/GATX/OXY trial is drawing industry-wide attention, its outcome could reshape liability considerations.
• Meanwhile, brokers are sending more opportunities involving group captives, particularly where clients face heavy auto exposure.

Energy, Power & Utility

• Wildfire exposed accounts are facing tighter terms, with some carriers trimming capacity.

• Bermuda is stepping into the breach, especially where mutuals have applied strict sublimits.

• Rates have largely stabilised following robust 2024 increases.

Punitive Damages

• While the market remains structurally unchanged, submission volume is on the rise.

• The addition of the Mitsui Sumitomo/Magna Carta facility expands options, but take-up remains relatively low outside the upper market tiers.

• The program is fully backed by MS Amlin AG in Bermuda which will be able to wrap MSIG USA as manager on behalf of:

• Marine Management USA Inc. / Mitsui Sumitomo Insurance USA Inc. / Mitsui Sumitomo Insurance Company of America / MSIG Specialty Insurance USA Inc.

• Maximum Limits of $15m with no minimum attachment will be offered for Casualty Umbrella and Excess. Pricing will be 10% of the domestic premium charged subject to a minimum premium of $5k.

Bermuda Market Changes

• Nearly all Bermuda markets have now agreed to sign onto Price Forbes slips, a strong endorsement of our track record and trusted processes. 

• Appetite across carriers is mixed: Some are actively looking to grow and diversify portfolios, while others remain focused on rate maintenance and core book protection. 

Recent Wins

Some standout placements from Q1 demonstrate the value of Bermuda–London collaboration and the flexibility we bring to challenging placements: 

• New York Tunnel Project: Part of the Northeast Corridor rail upgrade. We placed $85m in limits with our markets attaching excess of $15m and have quoted $200m x $100m. A prime example of strategic dual-market execution. 

• Rolling OCIP Hospital Project, Dallas, TX: Bound high excess coverage through close Bermuda–London alignment. 

• Wood Frame Builder’s Risk Facility: Successfully renewed a Bermuda-backed London facility, further strengthening our foothold in this specialised space. 

If you’d like to discuss these trends in more detail or talk through a placement challenge, the team is always here for a conversation, whether it’s in the boardroom or over a Dark & Stormy. 

Elliott Meachem | SVP | US Casualty Production Leader & Head of Transportation

ElliottMeachem@priceforbes.com | +1 441 747 7878 | +44 777 999 4101