Fitch Ratings, a global credit rating agency, has published a report reviewing a group of Bermuda and US-based re/insurance companies, namely Arch Capital Group Ltd., Ascot Group Limited, Hamilton Insurance Group Ltd., RenaissanceRe Holdings Ltd. and SiriusPoint Ltd.
In its report, Fitch Ratings states that financial strength across the group remains solid overall, although rating levels differ between companies. Arch is rated ‘AA–’, while Ascot and RenaissanceRe are each rated ‘A+’.
SiriusPoint holds an ‘A’ rating, upgraded from ‘A–’ in February 2026 due to stronger earnings supported by improved underwriting results and a reduced risk profile following a repositioning of its portfolio. Hamilton is rated ‘A–’.
Fitch Ratings highlights capitalisation and leverage as key factors underpinning ratings across the group. Capital-related scores range from ‘aa’ to ‘a’, reflecting their importance in supporting credit quality.
Based on Fitch Ratings’ Prism Global Capital Model, capital adequacy for the group was assessed as ‘Very Strong’ to ‘Extremely Strong’ at year-end 2025. Financial leverage remains relatively low to moderate, typically between 5% and 24%, which Fitch Ratings considers appropriate for the current rating levels.
The report also points to a decline in underwriting performance. Combined ratios either increased or remained unchanged in 2025, primarily due to higher catastrophe losses, including those associated with the California wildfires. This was partly offset by favourable reserve development.
Fitch expects underwriting results to face continued pressure in 2026 as market conditions soften, although all companies are still expected to maintain underwriting profitability. Arch is identified as outperforming its peers, with a financial performance and earnings score of ‘aa–’, supported by consistent profitability over its history and relatively low combined ratios in its mortgage insurance segment.
In terms of business profile, Fitch assesses Arch as ‘Favourable’, consistent with its ‘aa–’ credit factor score. Ascot, Hamilton, RenaissanceRe and SiriusPoint are each assessed as ‘Moderate’, aligned with ‘a’ category scores. The report notes that business profile is an important rating consideration, particularly given the role of scale, diversification and premium volume in determining competitive strength.
Fitch also notes that the companies maintain diversified underwriting portfolios across reinsurance and primary insurance, with exposure spread by geography and product line.
RenaissanceRe operates predominantly as a reinsurer, although it also writes some primary business through delegated authority arrangements. The other companies maintain a more balanced mix of reinsurance and primary insurance activities, while Arch also benefits from a significant presence in the primary mortgage insurance market.
Fitch Ratings explains that its analysis is based on its Insurance Rating Criteria and incorporates each company’s Ratings Navigator, which evaluates nine key credit factors underlying Insurer Financial Strength ratings. The report also reflects previous rating actions, including Fitch Ratings’ upgrade of Arch Capital’s debt ratings in September 2025 while affirming its IFS ratings with a stable outlook.
