AM Best reported that global reinsurers achieved a return on equity (ROE) of 22% in 2023, the highest in five years, due to favorable investment income and strong underwriting results. Despite significant insured losses from Hurricanes Helene and Milton, which are expected to affect fourth-quarter results, the market’s fundamental stability makes further softening unlikely. The report highlighted that reinsurers successfully reduced exposure to secondary natural catastrophes, maintaining low combined and operating ratios. Overall, while there may be challenges in the near term, the reinsurers are expected to continue exceeding their cost of capital over the medium term.