AM Best has maintained its stable outlook for the London Market insurance segment as despite softening pressures, the pricing environment for most business lines is expected to remain adequate and support positive underwriting performance in the near term.

In its new Best’s Market Segment Report, "Market Segment Outlook: London Market Insurance," AM Best also states that it expects the profitability of London Market companies to moderate over 2026, subject to normal catastrophe experience in the remainder of the year. AM Best highlights the market’s significant exposure to natural and man-made catastrophic events, and comments that a prolonged crisis in the Middle East, particularly if insured infrastructure becomes targeted, would likely generate losses for the London Market.

"Merger & acquisition activity in 2026 suggests the London Market remains attractive,” said Kanika Thukral, associate director, analytics at AM Best and one of the outlook's authors. “Recent multi-billion US dollar acquisitions are expected to strengthen the specialty (re)insurance offering of the acquirers and enhance their profiles in the London Market (often supported through a presence in the Lloyd’s market). Meanwhile, the Lloyd’s market itself has seen an influx of new syndicates, with some established by prominent insurance groups."

To access a complimentary copy of this Best's Market Segment Report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=363693 .

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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