As the reinsurance industry approaches the mid-year 2026 renewal season, Adrian Daws, CEO of Hamilton Re, the Bermuda-based underwriting platform of global specialty insurer and reinsurer Hamilton, remains optimistic about its growth opportunities, even as the market navigates transitioning conditions.
Speaking with Reinsurance News during our visit to Bermuda, Daws emphasised that Hamilton Re’s diversified portfolio across specialty, casualty, and property insurance and reinsurance, provides flexibility and resilience as the trading environment evolves.
“There are still opportunities for growth,” Daws stated. “Having a diversified portfolio allows us to be more flexible entering what we’re seeing as a more challenging trading environment.”
The executive expects the softening cycle in the specialty space to persist through the mid-year 2026 renewals, though the pace varies across sub-classes.
“We are seeing that not all the markets are moving at the same pace. In the specialty space, the market is assuming that the softening cycle will continue into the mid-year renewals. With markets moving at different paces, we’re seeing the Marine and Energy space perhaps feeling a bit more pressure,” he said.
Adding: “War and Terror and Political Violence classes, which are clearly subject to some activity at this time, are seeing less softening. The corrections in pricing are largely confined to those particular areas that are affected by the current conflict. That’s not necessarily something we’re seeing across the book.
“Broadly speaking, for specialty, we expect that trajectory of softening to continue.”
The casualty sector is a bit different, Daws noted, as it is showing more resilience. He described the outlook as good, emphasising that the general softening seen elsewhere has not yet taken hold here.
However, he urged caution regarding social and economic inflation, which remain the primary drivers of risk management within the casualty book.
With the property sector, the market assumption still remains that softening will continue into the mid-year, according to Daws.
“There is over capacity in the market, largely generated by the recent strong Q1 results that have been announced, but the underlying books of business are still very strong. The coverage and the attachment points that are being offered by reinsurers are still pretty good. So, though rates are coming off, they are coming off from a good place,” he explained.
While there are clear signs of softening, Daws believes that discipline is holding, although it does vary slightly by sector.
He commented: “On the speciality side of things, we have seen attachment points generally hold at 1.1 and 1.4. But cedents are requesting some buy downs and in certain cases, there is some evidence of those retentions, on loss free portfolios perhaps, reducing slightly.
“Marine Energy is showing the most in terms of a signal of softening, with a slight broadening of perils. For Political Violence, my comments are as just mentioned. So, the discipline is holding. And, people are generally managing the exposures through sub-limits, aggregate, event clauses, etc.”
“In the casualty space, there are limited pockets of increased ceding commissions, but only in a relatively small number of cases and where the loss experience would support that. Otherwise, I wouldn’t say there are any particularly material changes. And in property, the attachment points have largely held. The discussions there are really around pricing,” concluded Daws
