INTX offers two reinsurance products: INTX Re, a purpose-built operating system for assumed reinsurance, and ReinsureConnect, a cloud-native, AI-ready system that centralises and streamlines ceded reinsurance operations for carriers and fronting insurers.

In an interview with Reinsurance News, Lewis said there is a massive requirement for its reinsurance product, with demand coming from tier one carriers.

He noted, “We have a lot of really big players interested in our reinsurance product, and that’s from tier one to three carriers.

“The main thing is the interest that we’re getting and the quality of people that we talk to. A tier one carrier wouldn’t have given us the time of day with just our core product, whereas on the reinsurance side, we’re seeing a lot of interest.”

Lewis explained that INTX is seeing this traction as insurers seek more effective ways to manage reinsurance, with legacy systems increasingly unable to support growing complexity.

He said, “What’s actually happened with the legacy software market, and I’m talking post mainframe green screen, is that a lot of those systems were developed out of broker platforms or broker systems and broker software systems. What that meant was that there wasn’t really a function on the reinsurance side of things.

“So, you could manage policies and treaties, it was very much a siloed solution. You’ve got one solution for underwriting, a separate one for claims, a separate one for billing, and that all worked very nicely in the context of a broker’s system, but there wasn’t really a reinsurance component to that.

“What’s happened is there are a few very basic quota share systems out there, which, if anything complex, like sliding scale commissions, gets introduced, it becomes very difficult to do anything. It’s not dynamic, and it’s not in real time,” explained Lewis.

He added that there is a significant level of “shrinkage”, reaching as high as 8% in some cases, meaning that with billion-dollar reinsurance programmes purchased by tier one carriers, a material shortfall of up to $80 million takes place.

Lewis continued: “Extra hours are lost, because what everyone’s doing is running Excel spreadsheets between data lakes and trying to manage those processes in a very manual format, rather than it all just being updated dynamically and in real time. And so, that’s created a massive bottleneck in the whole insurance process and in the life cycle of an insurance policy.

“Reinsurance is typically a very big bottleneck, and the numbers involved are significant, especially with the increase that we are seeing in catastrophe risks at the moment, with the flooding, the wildfires, hurricanes, you name it across the world. That’s obviously become very key for a reinsurance carrier to manage.”

INTX shared findings from its latest research, which showed that, from an operational and systems perspective, 72% of insurers still rely on Excel or homegrown systems for critical workflows. In addition, more than 50% of policy workflows require manual intervention, creating latency and operational drag, while organisations lose up to $450,000 annually in productivity due to system inefficiencies and downtime. The research also found that many carriers operate across two to three core systems, with total implementation costs reaching up to $3 million.

From a reinsurance perspective, the commonly cited 1–2% “leakage” reflects only recoverables. Across the full lifecycle—including structuring, placement, accounting and capital—the true impact is closer to 3–8%+ of ceded premium.

These findings highlight the extent to which reinsurance operations remain constrained by fragmented systems and manual processes. Lewis emphasised that within that complexity, INTX removes a significant proportion of the burden.

“What’s given us the impact in this market is really the ability to manage complex reinsurance treaties and facultative contracts. That’s our niche,” he said.

He went on to highlight how ReinsureConnect modernises how carriers handle complex ceded reinsurance.

“We’re designed to integrate into existing carrier and reinsurer environments, not force disruptive rip-and-replace projects,” said Lewis. “A major part of that is helping insurers cleanse and unify fragmented data within a modern, real-time architecture.

“The platform was also built for operational accessibility and flexibility. Insurers can adapt workflows, onboard partners, and respond to change quickly without relying on proprietary expertise or lengthy vendor development cycles.

“That combination of accessibility, configurability, and modern architecture allows organisations to evolve their operations as business and market demands change.”

Lewis explained that a key focus for INTX is allowing flexibility, from the carrier’s perspective, to be able to add new products quickly, as well as add and change structures.

He said, “The key thing is that it’s not just the static system, once you buy it, you can’t do anything to it. To do anything to add a new product, you’re going to run an Excel spreadsheet and a manual process. The system can be adapted very quickly to add new products, to change commission structures, to change loss layers, because on the reinsurance side of things you’ve got one reinsurer that’s carrying you on your first million dollars’ worth of losses, they’re probably taking a net portion between one and two million. And then from two million upwards, you could have anything of 50 cat reinsurers carrying you in that. So, obviously that can be quite complex.”

Lewis explained that as those 50 reinsurers can alter throughout the year, even as often as day-by-day, and with the potential addition of facultative reinsurers if there’s not enough capacity within a treaty, primary carriers need to be very dynamic to be able to change that daily.

“We don’t believe carriers and reinsurers should have to ‘get in line’ every time they need to onboard a new partner or make an operational change,” said Lewis. “INTX was designed to give organisations the flexibility to manage those updates themselves through a simple, highly configurable platform.

“The goal is operational accessibility without sacrificing governance. Business users can make changes quickly without relying on proprietary expertise or extended vendor development cycles, while still maintaining the approval workflows and security controls insurers require.”

Lewis added that INTX’s approach allows insurers to fit modern capabilities into existing operating models while connecting and unifying data across systems to create complete operational visibility.

“There’s an operational uptick here that really resonates. And so, I think that’s where we started seeing this huge influx hit immediately,” he said.

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The funding raise was led by Brewer Lane Ventures, and included Box Group; Crystal Venture Partners; SV Angel; Avid Ventures; Verissimo Ventures; Blank Ventures; and global insurer Arch.

In 2026, the New York-based broker, which has a research and development facility in Tel Aviv, Israel, has opened offices in Miami, Florida, and Houston, Texas, and plans further US openings, including in Southern California, in the second quarter of this year.

Max Kane, Founder and Chief Executive Officer, Novella, said, “AI agents handle placement, binding, form comparison, policy review, subjectivity collection, inspections, billing, endorsements, renewals, and more. This allows producers to focus 100% of their time on building client relationships and growing their books.”

He continued, “We believe pairing world-class producers with world-class AI is the recipe for success. AI will make the best producers far better at their job, enabling them to better serve clients and focus on building bigger, more profitable books of business.”

The firm was co-founded in 2024 by Kane, a technology and insurance executive who spent almost four years at Lemonade; Michael Tsibelman, its Chief Technology Officer, who has led software teams at firms such as Microsoft, Gigya and DoControl; and insurance broker Alex Broome, Head of Brokerage, who has held key positions at The Baldwin Group and ReShield.

Kane emphasised that Novella believes that AI won’t replace insurance producers, but help make the best ones “super-producers,” and the industry will concentrate around the people and firms that use AI to empower the best human capital.

Novella sees this as a template for how AI transforms other relationship-driven legacy industries.

Chris Downer, General Partner at Brewer Lane Ventures, added, “Wholesale broking, at heart, is about human relationships. Our producers need to be close to our retail brokers, so we will be expanding strategically across the country over the coming years.

“Novella is the first wholesaler to effectively blend AI and talent. Wholesalers spend years building relationships. Novella makes them better at it – that’s why top brokers are joining the team, and how they’re changing specialty insurance.”

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The report is based on insights from 11 CEOs of leading insurance companies worldwide. It features interviews with insurance leaders from Germany, France, the UK, the US, Australia, Canada, and Slovenia. It explores the impact of technological developments on the insurance industry over the past 25 years, as well as what the next 25 years may bring.

The report found that insurance leaders view AI as the most influential technology shaping the industry today, followed by the Internet of Things (IoT), core systems, and cloud technology. However, several CEOs also highlighted AI’s potentially disruptive impact on the sector.

According to the report, AI is transforming insurance not only operationally, but also in how insurers work with people.

A central theme of the report was the human impact of AI, with CEOs repeatedly stressing that AI should enhance, not erode, empathy, personalisation, and face-to-face interaction.

“AI is already improving efficiency, particularly in processing unstructured data,” said Michał Trochimczuk, President and co-founder of Sollers. “Cost control will be the key to competitiveness. This means investing in automation, simplified standard architectures, modern rating systems and intelligent risk selection.”

“Several CEOs highlight workforce transformation as one of the most pressing challenges ahead,” added Marcin Pluta, President and co-founder of Sollers. “Our interviewees reject the notion that AI inevitably destroys jobs. Instead, roles are shifting toward more technological, analytical, and strategic responsibilities.”

The report also noted that AI, particularly generative AI, is expected to become embedded across all aspects of insurance, from pricing engines and product design to claims automation and customer interaction.

Risk management was identified as one of the most prominent areas that has evolved. Leaders noted that technology has reshaped how insurers quantify, assess, and manage risk, while still relying on human insight to interpret and act on data-driven outcomes.

Sollers acknowledged both AI’s transformative potential and the responsibility insurers have to integrate it thoughtfully. The report concluded that the future of insurance will be shaped not only by smarter systems, but also by how effectively insurers align AI, people, and purpose.

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Shriber will take over from Gary Dombowsky, who is stepping down from the position but will remain connected to the business as a Non-Executive Director of Malibu Life Reinsurance SPC and as a Senior Advisor. The company added that Shriber is expected to join Malibu Life’s Board of Directors, along with the boards of certain operating subsidiaries, subject to regulatory approval.

Malibu Life said the leadership change comes as the company enters what it described as its next stage of development, with plans to increase growth across its reinsurance operations and broaden its presence in the U.S. direct annuity market through its strategic partnership with Third Point LLC.

Shriber brings more than two decades of experience in financial services, including senior leadership positions overseeing large and regulated businesses. He joins the company from Prudential Financial, where he most recently served as Chief Operating Officer and Head of Strategy for the company’s Global Retirement and Insurance division, which Malibu Life said generates more than $40 billion in annual sales across markets including the United States, Japan and Brazil.

He has held several senior strategic positions, including Chief Strategy Officer for Prudential’s US businesses. Earlier in his career, he worked at Morgan Stanley Wealth Management and Citigroup Smith Barney, where he most recently served as Managing Director and Business Head of Insurance & Annuities.

He began his professional career at PwC within the firm’s Strategic Change practice, advising clients on business strategy and transformation initiatives.

Shriber holds an MBA from the University of Chicago Booth School of Business and a Bachelor of Arts degree from Harvard University. He is also a CFA charterholder. Malibu Life confirmed there is no information requiring disclosure under UK Listing Rule 6.4.8R in relation to the appointment.

Dimitri Goulandris, Chair of Malibu Life’s Board of Directors, commented: “Todd is exactly the right leader for Malibu Life at this point in our journey. Following a thorough search process, the Board concluded that Todd’s combination of strategic acumen, operating discipline, and deep experience in retirement and insurance at global scale is uniquely suited to the opportunity ahead. He has built and run businesses of meaningful complexity and delivered results in highly regulated environments. We are delighted to welcome him.”

Shriber added: “Malibu Life is a rare opportunity — a purpose-built platform with a public listing, a clear strategic mandate, and a market backdrop that strongly favors institutional-grade insurers with differentiated investment capabilities. I am energized by what Gary and the team have built, and by the partnership with Third Point. My focus will be on growing Malibu Life with discipline and pace: expanding our reinsurance footprint, advancing our direct origination strategy, and building the talent and infrastructure to deliver sustainable returns for shareholders.”

Daniel S. Loeb, Chief Executive Officer and Chief Investment Officer of Third Point, said: “This appointment reflects the strategic importance of Malibu Life within Third Point’s broader investment platform. Todd brings the operating capability and credibility to lead Malibu Life at this stage of development, and his experience across annuities, retirement, and insurance distribution maps directly to Malibu’s growth ambitions. We look forward to a long and productive partnership and to supporting Todd and the team as they execute on the significant opportunity ahead.”

Dombowsky noted: “It has been a privilege to lead Malibu Life through its formation and the transition to a publicly listed operating company. Todd is the ideal leader to take the business forward. His track record speaks for itself, and I am pleased to continue supporting him and the Board as the Company enters its next chapter of growth.”

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In a new report, the company said the 15 global multiline insurers (GMIs) it rates recorded combined net earnings of $84 billion during the year, compared with $68 billion in 2024.

According to S&P, reported earnings rose by 23% year on year, although underlying growth was lower once currency movements and exceptional items were excluded. On a comparable basis, the company said earnings increased by 9%, which it described as being at the upper end of its expectations for the sector.

S&P stated that earnings were partly supported by the weaker US dollar and a number of one-off transactions. AXA reported gains of $2.5 billion following the sale of its asset management business to BNP Paribas, while Prudential PLC recorded gains of $1.4 billion through the sale of part of its holding in ICICI Prudential Asset Management Company Limited. By comparison, AIG’s disposal of Corebridge in 2024 resulted in a one-off loss of $3.6 billion.

The company defines GMIs as insurers with broad diversification across business lines or international markets. These include groups such as Allianz, AXA, Zurich, AIG, Chubb, Tokio Marine, QBE, Prudential Financial, MetLife, Sun Life, Manulife, AIA, Prudential PLC, Mapfre, and Talanx.

S&P said the sector continued to benefit from pricing discipline, selective underwriting, conservative investment strategies, and the use of reinsurance to manage risk exposure. The company added that diversified business models and strong brand positions remained key advantages for large international insurers.

The report also highlighted the growing contribution of asset management and fee-based businesses to earnings. S&P said Allianz generated roughly one-fifth of operating earnings from asset management activities, while Zurich derived more than a quarter of operating profit from Farmers’ insurance management services. Sun Life and Manulife also generated more than 25% of earnings from investment management operations.

S&P noted that insurers continued to improve operational efficiency through internal risk management practices, product development, and wider use of technology. The company noted that generative artificial intelligence is increasingly being applied across underwriting, claims handling, policy administration, and fraud detection processes.

The company said the sector’s financial strength was reflected in its ratings profile, with nearly half of the insurers rated at ‘AA’. Over the past year, S&P Global Ratings upgraded AXA, Prudential PLC, AIA, AIG, and QBE, while revising the outlooks on Tokio Marine and Mapfre to positive.

Looking ahead, S&P expects earnings growth to slow across 2026 and 2027. The company said underwriting conditions and financial market conditions are unlikely to improve significantly, and forecast that sector earnings would remain broadly stable or rise only modestly during 2026.

S&P also warned that uncertainty surrounding the conflict in the Middle East continues to create risks for global markets, supply chains, commodity prices, and economic activity. The company said these factors were not fully reflected in its base-case forecasts.

Among the risks identified for 2026 were geopolitical tensions, market volatility, pressure on investment returns, rising exposure to private assets, elevated reinsurance costs, and regulatory challenges. S&P said prolonged inflation and weaker economic growth could increase claims costs and place pressure on consumer spending.

In property and casualty insurance, the company said underwriting results remained strong in 2025 due to favourable pricing conditions, lower catastrophe losses, and disciplined risk selection. Combined ratios averaged around 92%, with insurers including Allianz, Zurich, Tokio Marine, AIG, and QBE benefiting from improved catastrophe performance.

S&P said personal insurance lines showed stronger improvement than commercial lines, largely because pricing increases in personal lines were more pronounced. The company added that margins in commercial insurance appear to have stabilised following several years of substantial rate increases.

The report said life insurers also recorded higher earnings in 2025, driven by stronger demand for retirement and savings products, higher investment yields, and improved business mix. S&P noted that Asia-Pacific insurers delivered particularly strong growth due to demographic changes, rising insurance awareness, and increasing demand for long-term financial protection products.

While S&P expects life insurance earnings to remain resilient in 2026, it said profitability could be affected by weaker equity markets, geopolitical uncertainty, and potential credit losses linked to private debt investments.

The company also said insurers continued to prioritise shareholder returns through dividends and share buyback programmes. Average dividend payout ratios remained between 45% and 50%, while many insurers announced further buybacks supported by strong capital positions and manageable leverage levels.

Marc-Philippe Juilliard, Credit Analyst at S&P Global Ratings, commented: “Robust earnings translated into positive rating actions. GMIs demonstrated strong capitalisation, which led to consistently high average dividend payout ratios of about 45% and substantial share buyback programmes.”

S&P Global Ratings said it does not expect large-scale merger and acquisition activity to accelerate significantly in 2026, although selected acquisitions and restructuring activity are likely to continue across the sector.

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Comparably, in Q1 2025, the insurer reported £2.9 billion in GI premiums, and a combined ratio of 96.6%.

Country-wise UK&I GI premiums were up 26% to £2.5 billion, compared to the £2.0 billion reported for Q1 2025.

Personal Lines contributed 59% in growth, supported by both the acquisition of Direct Line and growth in the intermediated channel. Commercial Lines were 7% lower reflecting the impact of the rating environment partly offset by strong retention.

At £0.9 billion, Canada GI premiums saw a year on year increase of 3%, with Personal Lines up 4% supported by rate actions, and Commercial Lines up 1% reflecting scheme wins in GCS partly offset by the rating environment.

Group undiscounted combined operating ratio (COR) improved 2.5pp in Q1 2026, down from the 96.6% reported for Q1 2025. This result included improvements across all markets supported by strong rate adequacy and better weather experience.

Discounted COR stood at 90.0%, down from Q1 2025’s 92.9%.

Amanda Blanc, Group Chief Executive Officer, said: “We have delivered another quarter of strong trading, building momentum in 2026. We delivered profitable growth across Aviva despite global market volatility, demonstrating yet again the advantages of our market-leading positions and diverse business model.”

She continued: “We made excellent progress in General Insurance, growing premiums by 19% and improving profitability significantly in the UK, Ireland, and Canada. The integration of Direct Line is firmly on track with stronger profitability and policies sold through price comparison websites have nearly doubled since the start of the year. In Wealth, where we are the number one player, we delivered another very positive performance, increasing net flows by 49% to £3.3bn.

“Our workplace pensions business performed particularly well, increasing net flows by 71%, and the tax-year end was another success, with strong inflows in our adviser platform and direct wealth business.”

Aviva also reported an estimated Solvency II shareholder cover ratio of 171%, compared to 180% for the first quarter of 2025.

The firm’s retirement sales were up 4% at £1.8 billion in Q1’25, compared to £1.7 billion in Q1’24, driven by higher volumes in Individual Annuities and Equity Release. BPA volumes of £1.3 billion were broadly consistent with Q1 2024.

These results reinforce the insurer’s confidence in meeting its 2028 Group targets, which include an Operating EPS of 11% CAGR, and IFRS Return on Equity of >20%; and cumulative Cash remittances exceeding £7billion.

Blanc concluded: “We have made an excellent start to 2026. Our continued strong trading performance, high quality balance sheet, and diverse set of leading businesses, gives us confidence that we are well placed to meet our group targets, and deliver even more for our customers and shareholders this year.”

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In an interview with Reinsurance News during our visit to Bermuda, Bardon discussed the current state of the legacy market.

She explained, “We’re noticing more complex transactions. Traditional deals historically involved discontinued business where clients want to end all claims management—they are still common. However, we’re now seeing more purely capital relief structures, which are notably more intricate.

“Before I joined Compre, I was more familiar with the traditional methods of capital relief like collateralised reinsurance and sidecars. But these renewable legacy capital relief structures – such as cancel and replace for new accounts, are a unique form of surplus capital. I think there is going to be increasing complexity and the need for creative, patient, long term partners in the legacy space.”

Bardon also said she expects increased involvement from third-party capital across the Property & Casualty insurance market, noting that such capital will require clear exit solutions and that legacy is well placed to become increasingly involved in helping third-party capital get comfortable with these longer-duration assets.

She continued, “I anticipate a greater focus on establishing long-term partnerships and identifying ways to support additional collaborative efforts.

“There’s also this concept of providing solutions across the whole lifecycle of an exposure, and I think our participation on the prospective side helps to facilitate that as well.”

In addition, she highlighted the significant growth potential in the US legacy market, while emphasising that it is more complex and requires patience.

“Compre’s legacy has historically been European-focused, but in recent years we’ve expanded into the US. Whilst Europe remains central to our strategy, US involvement is increasing. The US market is and more complicated, with greater uncertainty due to its judicial system, evolving statute of limitations, and 50 different state regulators approving transactions. So you have to be very patient.

“There is an opportunity for cedents in the US to transfer some of their potential adverse development; however, this can lead to a bid-ask spread that sometimes has difficulty being bridged. There are ways around that where it does require some creativity, so getting the cedent comfortable, and ensuring that if their reserve pick is correct, they’re going to benefit from that. But if our reserve pick is correct, we’re not going to be adversely hurt by that. Using creative mechanisms like corridors and experience accounts is really important,” said Bardon.

Looking ahead, Bardon reiterated that demand for capital relief structures is likely to increase in the next few years, alongside continually figuring out how legacy can work alongside third-party capital in prospective deals such as sidecars.

“I think that there’s an expansion of opportunities for legacy players to participate in more and different types of transactions than there has been historically,” said Bardon.

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Based in Dubai, Cherrak will report to Houcine Zouaoui and will oversee QBE Re’s underwriting strategy across the MENA region.

The appointment reportedly forms part of the reinsurer’s broader efforts to expand its regional footprint and strengthen its capabilities through local market expertise.

Abdallah Balbeisi, Director of Europe & Growth Markets, QBE Re, commented, “We’re excited to welcome Montassar to QBE Re. His strong underwriting track record, including leading major programmes in the Saudi Arabian and Algerian reinsurance markets, makes him an excellent fit for this new role.”

Montassar holds nearly 30 years of experience in the financial sector and has worked in reinsurance since 2005.

He joins QBE Re from SCOR SE, where he was Senior Underwriter and Client Relationship Manager for the Africa & Middle East region.

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This bifurcation aligns the company’s continued focus on connecting scientific innovation with real-world decision-making across the insurance and financial services industries.

KatRisk said that this move also reflects the dynamic nature of catastrophe risk, thereby pressuring re/insurers to evaluate risk with greater speed, precision, and transparency.

The company’s new structure is designed to meet that need, bringing together high-fidelity models, hazard data, and analytics with the technology that operationalizes them.

The scientific foundation is represented by KatRisk Intelligence, bringing together catastrophe models and hazard data, across flood, wildfire, tropical cyclone wind, severe convective storm, and earthquake, and analytics.

Additionally, it is built on high-resolution, physics-based modeling and advanced computational infrastructure, simulating how events originate, evolve, and translate into financial loss. This approach aims to enable a complete and transparent view of risk, supporting underwriting, pricing, and portfolio management decisions with greater confidence and consistency.

KatRisk Technology is the delivery layer that puts that intelligence into action, it includes KatRisk’s suite of solutions, SpatialKat, SoloKat, Perilfinder, and Orchestra. These integrate catastrophe risk directly into underwriting and exposure management workflows.

Orchestra, KatRisk’s model-agnostic analytics and decision engine, gives organisations the flexibility to work with KatRisk’s own models, incorporate third-party views of risk, or bring their own data into a single environment.

The company explained, “This enables teams to compare perspectives, validate assumptions, and make more informed decisions without being locked into a single model or data source.”

Together, the two units create a connected ecosystem bridging the gap between catastrophe science and business decisions, allowing organizations to move beyond static risk views toward dynamic, actionable insight.

Martyn Sutton, General Manager, KatRisk, commented, “This is about making catastrophe risk insights usable at the point of decision, Whether clients are leveraging our models, integrating third-party data, or bringing their own view of risk, we’re enabling them to evaluate it all in one place and act with greater confidence.”

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Moody’s reports that the European insurance sector in 2026 is primarily focused on macroeconomic uncertainty, with competitive pressures and geopolitical risk also ranking highly.

Despite this cautious backdrop, Moody’s notes that capital strength across the industry remains solid, with continued confidence in balance sheets and investment capacity.

Moody’s states that macroeconomic uncertainty is the most frequently cited concern among CFOs, identified by around two-thirds of respondents.

Competitive pressure follows closely, with 63% highlighting increasingly intense rivalry across markets that is limiting pricing power and putting pressure on margins, even though overall profitability expectations remain broadly steady. Geopolitical risk is also a key concern, reflecting ongoing instability and its influence on strategic decision-making.

According to Moody’s, insurers continue to show a strong willingness to deploy surplus capital. Around 58% of CFOs plan to allocate excess capital, while 31% intend to maintain current levels and just 12% expect to increase capital buffers. Planned uses include investment in new business, share buybacks, mergers and acquisitions, and dividend payments. This approach is underpinned by expectations that reforms to Europe’s Solvency II framework will strengthen solvency positions, with around 60% of respondents anticipating a positive impact.

Moody’s reports that investment strategies remain largely unchanged overall. Around 70% of CFOs expect to maintain their current exposure to illiquid and higher-risk assets over the next two to three years, while about one-fifth plan a modest increase. Private credit and infrastructure stand out as the most attractive areas for incremental allocation, driven by yield and diversification benefits. Real estate is the asset class most commonly expected to see reductions, although some insurers still plan limited increases.

Moody’s also highlights a growing emphasis on technology investment, particularly in modernising core systems and infrastructure. Nearly two-thirds of CFOs are prioritising upgrades to legacy platforms in order to improve efficiency and support advanced analytics and artificial intelligence. Adoption of AI is accelerating, especially in underwriting, claims management and fraud detection, although Moody’s notes that legacy systems remain a significant constraint on wider implementation.

Profitability expectations remain stable, according to Moody’s. Following strong results in 2025, most CFOs expect either flat or moderately higher operating profits in 2026. Around 46% anticipate stable earnings, while another 46% expect growth of 5–10%, and none expect a decline. Investment returns are also expected to remain resilient, supported by relatively high yields even as short-term interest rates ease.

In life insurance, Moody’s observes that revenue is expected to be supported by existing long-term portfolios, with additional growth potential from savings and retirement products. Structural drivers remain important, particularly in the UK bulk purchase annuity market and ongoing pension reforms in the Netherlands. In property and casualty insurance, premium growth is expected to slow as pricing stabilises after several years of strong increases.

Moody’s notes that claims inflation is expected to remain broadly manageable, with most CFOs anticipating stable severity levels. However, some concerns remain that geopolitical developments, including tensions in the Middle East, could place upward pressure on costs, particularly through energy prices and supply chain disruption. Insurers generally expect to offset claims inflation through pricing, although the balance between price increases and claims growth is becoming more finely matched.

Competitive conditions remain a central theme across the sector. Moody’s reports that pricing environments have become more challenging following several years of strong rate increases, particularly in property and casualty insurance. In life insurance, increased competition in areas such as bulk purchase annuities, including from alternative asset managers, is contributing to margin pressure.

Capital management remains focused on flexibility and shareholder returns. Moody’s notes that share buybacks are becoming an increasingly important mechanism for capital distribution, while dividend policies remain relatively stable due to established commitments. Mergers and acquisitions activity is expected to continue, although most insurers are taking a selective approach, focusing on consolidation opportunities rather than large-scale expansion.
Regulatory developments are also shaping expectations.

Moody’s highlights that reforms to the Solvency II framework, expected to take effect in 2027, are likely to provide moderate capital relief for many insurers. While most respondents expect a positive impact on solvency ratios, the majority anticipate only limited improvements, with relatively little expectation that additional capital will be redirected into broader real economy investment.

On asset allocation, Moody’s reports continued interest in private credit, which is favoured for its yield and diversification characteristics. Exposure to public equities is expected to rise modestly, supported in part by regulatory changes that reduce capital charges on long-term equity holdings. Real estate allocations are expected to remain broadly stable overall, with no significant shift anticipated.

Moody’s concludes that artificial intelligence is expected to deliver gradual improvements across the sector. Insurers anticipate efficiency gains in underwriting, claims handling and fraud detection, although its impact on product development is expected to be more limited. Overall, AI is viewed as an enabling development rather than a disruptive force, with benefits expected to build steadily over time rather than produce immediate structural change.

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