Insurance - Property & Casualty: 1Q26 P&C Insurance State of the Industry: Earnings Uniformity, Results All Kind of Tasted Like Chicken

Research evidence excerpt

Insurance - Property & Casualty: 1Q26 P&C Insurance State of the Industry: Earnings Uniformity, Results All Kind of Tasted Like Chicken

through repurchases. Early commentary around

Apr 1 and midyear renewals indicates further double-digit pricing declines given the

competitive market. Despite pressure, reinsurers still view property-catastrophe as

attractive, while casualty lines continue seeing rate increases at or above loss trends.

Company results were broadly solid in 1Q26 due to the lack of major CATs, favorable PYD,

and large repurchases. Arch delivered strong underwriting across segments, Hamilton

benefited from strong growth and investment gains, RenRe posted strong Property

results while it continues to progress through its Casualty & Specialty improvement plan,

and Everest continues to streamline operations to be a more focused firm. Looking ahead,

as pricing pressure likely persists through 2026, underwriting discipline becomes more

critical to sustain returns.

Brokers: Brokers delivered bifurcated 1Q26 results: Marsh and Ryan outperformed on

organic growth, Aon and Gallagher came in line, and WTW and Brown & Brown

underperformed (even against muted expectations for Brown). Despite macro uncertainty

and softer property pricing, most firms issued similar guidance and highlighted resilient

demand for risk management solutions, driven by increasing complexity and the rising cost

of risk. Margins remain under pressure from elevated compensation tied to talent

investments, though modest G&A offsets and ongoing efficiency initiatives support

expectations for year-over-year expansion. Ryan notably guided to adj. EBITDAC margins

down 100-150bps in 2026, given talent and technology investments. Middle-market