Weak reinsurance markets and lower property catastrophe rates are weighing on Marsh’s reinsurance unit in the second quarter of 2026, but executive leadership believes strong growth opportunities remain in the industry.
In the second quarter of 2026, global reinsurance broker and Marsh business Guy Carpenter’s revenue fell 2% on a GAAP and underlying basis to $664 million. In the first half of the year, growth remained steady.
In the reinsurance space, continued weak market conditions have been driven by ample capacity and growing demand from reinsurers, creating a favorable market for insurers and driving down rates.
Marsh President and CEO John Doyle explained that Florida catastrophe renewals on June 1 resulted in rate reductions of 15% to 20% as oversupply outweighed modest increases in demand.
The size of Guy Carpenter’s real estate book also impacted the quarter’s results, as it represents 50% of the broker’s global portfolio and represents the largest real estate cat book in the market.
Guy Carpenter President and CEO Dean Klisura added: “The Online Real Estate Cat Price Index, which we see every quarter, fell 16% mid-year, accelerating from a negative 12% when updated on January 1. This is the largest year-over-year decline we have observed since we created the index 25 years ago.”
Consolidation activity across the industry in the first half further impacted revenue growth.
Despite pricing pressures in the real estate market, CEO Doyle noted that execution remained strong, supported by excellent new business generation and customer retention.
Klisura agreed with Doyle’s comments, adding: “As John noted, our negative growth in the quarter and flat growth in the first half were clearly driven by lower real estate prices.
“We continue to deliver strong execution in a challenging market. Despite pricing headwinds, we see significant opportunities for future growth. We set a record for new business in the first half of the year, delivering strong double-digit new business growth.
Additionally, the International Casualty business achieved double-digit growth, while the U.S. Casualty business achieved mid-single-digit growth, with differentiated pricing based on loss experience and portfolio quality.
Capital and advisory services continued to deliver strong double-digit growth in M&A advisory, structured transactions, sidecars and other capital structures.
By the first half of 2026, the outstanding limit of the catastrophe bond market reached US$61 billion, and Guy Carpenter issued 20 catastrophe bonds in the first half of 2026 with a total limit of US$5 billion, setting a record for the company.
Klisura concluded: “We continue to invest in top production talent around the world. Our headcount has grown for five consecutive years and client demand for our advice and solutions has never been greater. While we faced growth challenges in the first half, we are pleased with our team, our talent, our platform and our future growth prospects.”
