Howden Re publishes half-year 2026 (re)insurer earnings report: Putting capital to work
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Pricing is softening. Earnings aren’t.
Howden Re has launched its latest (re)insurer earnings report Putting capital to work, examining how the market cycle is developing as pricing pressure builds but financial strength persists.
Produced by Howden Re’s Business Intelligence team, the half-year 2026 report looks beyond headline rate movements to assess how earnings, reserves, capital and portfolio decisions can help us prepare for the next phase of the cycle.
The picture is changing. Rates are softening across most major lines, but this has yet to translate into weaker earnings. Strong operating performance, favourable prior-year reserve development and healthy capital positions are giving carriers choices over where to put capital next.
Michelle To, Head of Business Intelligence, Howden Re, said:
“The focus now is on cycle management. As pricing becomes more competitive, carriers are looking closely at where they grow, where they prioritise and how they put capital to work. The challenge is to protect sustainable returns while staying ready to invest when the right opportunities emerge.”
Growth is getting harder to find
The market is becoming more selective.
Across the report’s composite, liability premiums grew 7.6% year on year and property increased 2.7%. Reinsurance moved in the other direction, with combined reinsurance premium down 6.7%.
The US excess and surplus (E&S) market shows the same split. Overall premium volume grew 2.8% in the first half of 2026, compared with 13.2% a year earlier. But the headline masks very different experiences by line. Professional liability premiums increased 15% and liability non-professional 11.2%, while property fell 13.7%.
Growth hasn’t gone away, but carriers are having to search harder for it – and be clearer about where they want it.
Earnings still have room
Softer pricing hasn’t yet translated into weaker underwriting results.
Combined ratios across Howden Re’s global composite continue to improve, supported by strong underwriting performance. Forward estimates point to some deterioration as softer conditions work through portfolios, while expected return on equity remains relatively stable. European profitability is also trending more favourably than North America and Asia Pacific.
Reserves are helping too. Favourable prior-year development continued to support underwriting performance in the first half, giving carriers another source of earnings as the benefit of earlier rate increases starts to reduce.
Michelle To said:
“Rates tell you where the market has been. Earnings, reserves and capital tell you much more about where it can go next. When we look at those measures together, the market is still in a strong position. But the differences between regions, lines and individual portfolios are becoming much more important.”
The capital question is changing
For the past few years, strong underwriting and investment returns have helped build capital. Now the focus is shifting to what carriers do with it.
Some are returning more to shareholders while others are investing in growth. And across the market, carriers are becoming more deliberate about which lines, clients and opportunities deserve their capacity. The report describes a market moving beyond the initial softening phase with balance sheets still strong.
That matters as the cycle moves on. When pricing alone can no longer drive growth, underwriting choices matter more.
So does capital allocation.
Where carriers put that capital will help shape where capacity builds, where competition increases and where the next opportunities emerge.
The report draws on company half-year results and investor presentations alongside NOVA, market data and Howden Re’s own broker proprietary insights to give a broader view of the forces shaping (re)insurer performance.
Read the full report for the Business Intelligence team’s view of half-year 2026 (re)insurer earnings, covering pricing and premium trends, reserves, forward profitability, E&S market dynamics, solvency and capital.
Click here to request access to the report