At a glance
- Written volume at the July renewals fell 9.1%.
- For ILS fund selectors and cat bond buyers setting January expectations, Munich Re's smaller book compares against Gallagher Re's record $688 billion of dedicated capital.
- Nine-month insured catastrophe losses were about $92 billion, 29% below the 2016–2025 average, according to Gallagher Re.
Munich Re lifted its 2026 profit target to €6.6 billion after preliminary third-quarter profit of about €1.7 billion beat a €1.479 billion consensus.
Written volume at the July renewals fell 9.1%. Gallagher Re counts a record $688 billion of dedicated reinsurance capital and six quarters without a $10 billion-plus insured catastrophe.
For ILS fund selectors and cat bond buyers setting January expectations, Munich Re's smaller book compares against Gallagher Re's record $688 billion of dedicated capital. Munich Re has not said whether the volume cut reflects pricing discipline or a broader retreat from volume.
Nine-month insured catastrophe losses were about $92 billion, 29% below the 2016–2025 average, according to Gallagher Re.
Third-quarter earnings: rising investment income and slower rate increases
Chubb reported record third-quarter investment income of $1.79 billion, up 8.6% pre-tax, and net income of $2.84 billion, up 1.5%, while catastrophe costs more than doubled to $705 million.
Travelers' core income rose 4% to $1.947 billion, and the average renewal rate increase in its domestic business insurance book, excluding National Accounts, fell to 0.9% from 4.3% a year earlier.
Kinsale booked a $37.6 million pre-tax loss on a portfolio repositioning that it says left book value intact; operating earnings rose 5.9% and net investment income climbed 17.5%.
Ategrity ran an 84.7% combined ratio but a $17.2 million investment loss cut net income. The E&S insurer's $219 million utility and infrastructure portfolio at fair value produced volatility it describes as separate from underwriting.
RLI's casualty segment earned $1 million of underwriting income on an $8.2 million reserve release. The casualty combined ratio was 99.6 and the current accident year was below zero before that release.
W.R. Berkley's casualty reinsurance line wrote $144.2 million of net premiums in the third quarter against $192.7 million a year earlier, a 25% fall, and management guided to roughly 10% to 20% further shrinkage. Chubb CEO Evan Greenberg, on the same week's call, described sidecars, broker facilities and investor-backed managing general agents as "naive capacity" adding to casualty lines as property price pressure spreads.
The next test is January 1, when Munich Re's written volume will show whether July's cut was a single decision or a run-rate.
Reported by The Wrap desk from Munich Re preliminary results (via The Insurance Capital Week coverage), Gallagher Re (via The Insurance Capital Week coverage), Chubb, Travelers, Kinsale, Ategrity, RLI, W.R. Berkley quarterly results (via coverage), Bermuda Monetary Authority (via The Insurance Capital Week coverage), Bloomberg News interview with Yukinori Takada (via coverage) and AM Best report on Everspan-Falvey agreement (via coverage). Published . Corrections
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