Q2 2025 State of the Market: Bermuda Casualty
Market Update & Emerging Trends
We remain in a hardening market where rates have been going up at least 10%, even for the cleanest of accounts. This, coupled with a notable pullback in capacity from US domestic carriers, is creating significant new opportunities for brokers looking to Bermuda for solutions.
In this environment, creative programme structuring is paramount. We are proactively working with clients to restructure their excess liability programmes, a strategy that has proven highly effective in mitigating the impact of premium increases and securing the right coverage.
Construction
Our specialist, Alex Allen, has had a particularly strong quarter. His team successfully expanded capacity for a large ENR (Engineering News-Record) General Contractor, deploying it further down the tower for greater impact.
We also proved the market’s versatility by binding layers for both a major infrastructure project and a challenging residential build in Florida.
Transportation
As ridership numbers continue to increase across the US, many insurers are looking to achieve large premium increases. We are successfully highlighting our clients’ robust risk management protocols which is enabling us to secure more favourable renewal terms against a challenging market trend.
Energy
While the baseline for rate increases is around 10%, the key concern remains wildfire. However, we have remained successful in securing dropdown wildfire coverage for well-managed risks.
Punitive Damages
The appetite for punitive damages cover continues to grow. We have seen an increase in interest from buyers this quarter and expect this momentum to build throughout the second half of 2025.
Bermuda Market Changes
Although we have not seen any new capacity this past quarter, we are excited for the remainder of 2025 as we help the following two markets grow their US Casualty book from scratch:
Mosaic Bermuda: led by April Andruczyk, formerly AWAC Bermuda
QBE Bermuda: led by Saadia Savory who joins from Aspen Bermuda
We have strong relationships with both leaders and look forward to sharing specifics on their capacity and appetite in our next update.
Recent Wins
Upstream Energy: We placed $120m in excess capacity for a California E&P (Exploration & Production) company.
Resort/Hotels: Placed Punitive Damages cover for an insured who traditionally hadn’t purchased the cover. This innovative placement extended across both the primary and excess layers.
Summary / Outlook
Bermuda’s role as a critical partner for US casualty placements is more pronounced than ever. The continued reduction of limits by domestic US markets is channelling a strong pipeline of opportunities to the island. We are well-positioned for a busy second half of the year, helping US brokers find solutions for their upcoming renewals.
The market isn’t getting any softer, but that’s precisely where we thrive. Our relationships and structuring expertise are your advantage in this environment, and we look forward to putting them to work for you.
Elliott Meachem | SVP | US Casualty Production Leader & Head of Transportation
ElliottMeachem@priceforbes.com | +1 441 747 7878 | +44 777 999 4101