Article ID: 6b805e24ede324b05583d63ffc1729b7a117c8bb8a251de3dc36a69aadf431d5
Source ID: secondary:businessinsurance.com
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URL: https://www.businessinsurance.com/reinsurance-capital-rises-yet-profitability-falls-gallagher-re/
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Reinsurance capital rises, yet profitability falls: Gallagher Re - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Reinsurance capital rises, yet profitability falls: Gallagher Re by Matthew Lerner Reinsurance Arthur J. Gallagher & Co. May 5, 2026 Reinsurance dedicated capital increased 11% to a record $648 billion in 2025, although profitability waned as reinsurance markets softened. This included $513 million in traditional capital and $135 million in alternative capital, both respective highs, according to a report Tuesday from Gallagher Re. Retained earnings and “strong” alternative capital inflows were the main drivers of the increase, the report said. Nonlife alternative capital increased by 18% in 2025, the largest annual growth rate observed to date. Net inflows also backed a broader range of lines of business, including casualty, Gallagher Re said. Forecast for traditional capital growth is 4% in 2026, below the 10-year average of 6%. Reinsurers face a lower return on equity going forward as rates soften as a function of the strong capital position. Renewal rates for property catastrophe reinsurance are down by double-digit percentages but more broadly declines are less severe, with “overall portfolio rates” estimated to be down by mid-single – digit percentages year-to-date, Gallagher Re said. Revenue growth “materially” slowed in 2025 as a result of the softening market, from 9.7% in 2024 to just 1.2% in 2025 for the composite of companies analyzed by the report, “driven by a softening market in property and specialty lines while rates remained broadly flat in casualty,” Gallagher Re said. Related News Investigations key as employers navigate rising psych comp claims May 5, 2026 Capacity not keeping up with data-center growth May 5, 2026 Lawsuit abuse is the new personal tax May 5, 2026 Court upholds denial of medical pot reimbursement for psych injury May 5, 2026 Digital asset risks require policy changes to ensure coverage May 5, 2026 Anthony appointed president of Ryan Specialty unit May 5, 2026 Companies urged to treat workforce stress as an enterprise exposure May 5, 2026 Risk managers turn increasingly to captives, alternative cover May 5, 2026 Qatar Insurance’s premiums climb May 5, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
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