The LA wildfires in January and severe convective storms across the United States accounted for the bulk of the losses. (Credit: Pierce/Adobe Stock)
Global insured losses reached $84 billion in the first half of 2025, the highest first-half total since 2011, according to a new report from Gallagher Re.
There were 14 events with $1 billion or more insured losses in the first half, and 13 of them were in the United States.
Insured losses were 55% higher than the decadal average, mostly because so many of the catastrophes happened in the United States. The LA wildfires in January and severe convective storms across the rest of the country accounted for 92% of the losses.
While the U.S. saw an active start to the year, catastrophes were lower in most other parts of the world, making the first half of the year manageable for the reinsurance industry, the report said.
But that could change quickly. The industry started the year with $769 billion in capital, the report said. Gallagher Re estimates that a single event of $75 billion to $100 billion would alter market perception and property coverage purchasing behavior at the next reinsurance renewal.
“Given the current reinsurance market capacity available, the industry remains healthy and in excellent position to handle more than $100 billion of annual losses — but we should remain mindful that, to-date, U.S. insured losses have eroded a notable portion of reinsurers’ 2025 natural catastrophe budgets,” said Steve Bowen, chief science officer at Gallagher Re. “With the historical peak loss months in Q3 yet to come, all eyes are on the Atlantic hurricane season and otherwise staying prepared for an unexpected catastrophe event.”
Colorado State University’s hurricane researchers are expecting a slightly above-normal hurricane season this year, with 16 named storms, eight hurricanes and three major hurricanes.
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