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Q3 2025 State of the Market: Bermuda Casualty

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As the global insurance landscape navigates ongoing economic pressures, the Bermuda market continues to affirm its role as a critical and reliable partner. While U.S. domestic carriers are increasingly retracting capacity or imposing significant rate increases, Bermuda delivers essential stability and solutions, reinforcing its value proposition for clients seeking consistent and robust coverage.

Product Line Update

Construction

The U.S. commercial construction market in Q3 2025 showed signs of cautious resilience amid broader economic headwinds. Overall construction spending grew by a modest 1%, reflecting a sector navigating high interest rates, tighter financing conditions, and a cooling pipeline of new projects. While traditional commercial segments like office and retail continued to face pressure from shifting demand and remote work trends, growth was buoyed by robust activity in data centers, transportation infrastructure, and power generation projects. These sectors benefited from long-term structural demand and federal investment initiatives, helping offset declines elsewhere.

Material costs remained relatively stable through the quarter, and early signs of interest rate cuts offered a glimmer of optimism for future financing conditions. However, the market also contended with disruptions from natural disasters in the Southeast and political shifts that introduced uncertainty into regulatory and fiscal planning. Sustainability and innovation emerged as key strategic priorities, with increased adoption of AI, IoT, and digital twin technologies reshaping project delivery and building management.

Transportation

The passenger rail sector is facing a pivotal moment, with an anticipated increase in the passenger rail liability cap in 2026. This has prompted many railroad clients to proactively question where the necessary additional capacity will be sourced. With a portfolio of over 40 transportation accounts, your Price Forbes Team is fully engaged with the market to engineer and deliver the capacity required to meet this future demand.

Energy

Bermuda continues to cement its position as a global leader in the Energy sector. The market’s success stems from a disciplined yet flexible underwriting approach, which fosters a dependable and expanding marketplace for these complex exposures. This balance is key to providing consistent and broad coverage that clients can rely on.

Punitive Damages

The critical importance of punitive damages cover has been brought to the forefront following a recent $200 million verdict against a prominent electric car manufacturer. This verdict occurred in a state where such damages are not insurable by domestic markets, highlighting a significant coverage gap. Bermuda remains the definitive solution for wrapping punitive damages exposure, offering clients vital protection against escalating litigation risks.

Notable Wins

  • Habitational: Successfully secured additional capacity for a real estate management company, effectively filling capacity gaps from departing markets – ensuring continuity of coverage.
  • Music Label: Renewed capacity for a global music label with relief in pricing based on expiring relativities to the clients advantage.
  • Sports: We successfully secured triple the excess capacity on one of our key sports accounts. This strategic win not only strengthens our position in the market but also enhances our ability to support client growth.

Emerging Trends

We are observing a distinct rise in activity across alternative therapeutics, signaling growing interest and investment in this evolving space. This trend presents new opportunities for innovation and tailored coverage solutions, and we’re closely monitoring developments to stay ahead of the curve.

Summary

The value of the Bermuda market is clear: it offers not only capacity but also ingenuity and a willingness to embrace complexity. Our team’s deep relationships and expertise are best utilised on opportunities that require innovative and bespoke solutions. As we move into the final quarter of 2025, we remain committed to finding creative and effective solutions for our partners.

Please get in touch to discuss how our talented Casualty team in Bermuda can deliver for you.

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

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