Q2 2025 State of the Market: Bermuda Property
From the desk of Ryan Hill, Head of Property, Price Forbes Bermuda
Market Update & Emerging Trends
Off the back of strong 2024 underwriting results, we noticed that carriers entered the year with ambitious, double-digit growth targets. With Q1 being a low volume quarter, we started to see acceleration in Q2. Despite there being limited new capacity in the marketplace, existing players expanded their appetite, either by launching new products or simply increasing their participation across the board in a competitive bid for market share.
Oversubscription is rife, with a significant number of clean/profitable accounts boasting near 200% capacity – a nice problem to have for Insureds.
Placements continue to be completed weeks in advance; this early commitment gives brokers the ultimate leverage to continue negotiating rates right up until the programme is bound as carriers compete to secure their orders.
The prevailing trends of Q1 (ample capacity and downward pressure on rates) intensified in the second quarter, creating a dynamic environment that, while favorable for buyers, demands careful navigation from brokers.
- Terms & Conditions continue to favour Insureds, driven by a surplus of market capacity. This allows buyers to be highly selective when binding their panel of insurers, while also achieving competitive pricing, eliminating price outliers and Policy non-concurrency.
- While not a new strategy, Q2 saw a marked increase in enquiries and binding activity for Long-Term Agreements (LTAs). Clients, especially in high excess layers, are seizing the opportunity to lock in favourable rates for 24 or 36 months. In response, we are seeing that many carriers are competing not only on the initial premium but are also committing to future rate reductions, subject to standard provisions, to secure the business.
While forecasts predict an above average (3-5 major hurricanes) Atlantic Hurricane season for 2025, the market has remained quiet through the end of June. The significant losses from 2024’s storms, Helene and Milton, are now largely “priced in” and considered within the CAT budget for the North American market, preventing any material changes to market conditions so far. The real story of the quarter has been the relatively benign Severe Convective Storm (SCS) activity, PCS record Q2 2025 losses at $17.9Bn of insurable loss across 26 coded events, ranking it the 2nd least costly quarter since 2020.
Playing the long game
Carriers are known for having long memories, and while this market cycle shows no immediate sign of change, longevity and sustainability should be considered a prudent approach to risk transfer right now. Those that chase the rates down as quickly and aggressively as possible for immediate relief should be prepared for the pendulum to swing just as swiftly when the market inevitably corrects. Partnership, as always, proves its value most in the long run.
In a market defined by intense competition and Broker of Record (BOR) shifts, we are proud to have achieved a client retention rate of nearly 90% for the quarter. This result is a testament to the strength of our partnerships and our ability to deliver sustainable, long-term value for our clients, even when the market is at its most challenging.
Parametric alternative
As an alternative to traditional indemnity structures, our parametric offering through Price Forbes Re experienced a significantly busy quarter. With innovative solutions now available for nearly every peril and territory, parametric triggers are becoming an increasingly powerful tool for clients seeking certainty and rapid liquidity. For more information on how these solutions can complement your risk transfer strategy, please reach out to our team.
Recent Wins
Our wins highlight the unique strengths Price Forbes brings to our partners.
- We secured a large, multi-family home schedule from a new producer relationship in Colorado, successfully introducing three Bermuda markets to an established placement and demonstrating our ability to add immediate value.
- A complex rail account was brought to us via a BOR letter. In close collaboration with our London colleagues, we successfully structured and placed the risk, highlighting our cross-functional strength. Utilizing this strength we also expanded our shares on a number of key habitational risks, utilizing both Bermuda and London teams to complete complex schedules exceeding $20Bn+.
Class of 2026
We are pleased to report that the outlook for the Property market in Bermuda looks strong, with at least two established markets confirming that they will be setting up on or around 1/1. Both Convex and QBE have each committed to creating an additional platform to complement their existing Property offering, which we expect will act as a catalyst for other markets considering additional distribution outside of London and the US. More to follow in the next quarterly update.
These market updates are just the start of the conversation. Whether your challenge requires a whiteboard or a waterfront view, our team is here to help. Let’s connect.
Ryan Hill, Head of Property
Price Forbes Bermuda
ryan.hill@priceforbes.com