2H 2025 Market Review & 1H 2026 Market Outlook

Market Outlook:

•  CLAIMS: Stable. 201 Securities Class Actions (SCA) were filed in 2025, slightly above the five-year average of 194 filing but below 2024’s 221 filings.
• SETTLEMENTS: Stable. The average securities class action settlement decreased from $43 million in 2024 to $40 million in 2025 while the median settlement increased to $17.3 million from $14 million during that same period.
• CAPACITY: Decreasing. Four carriers have exited the market due to profitability concerns and current carriers have signaled retrenchment. Carrier consolidation (AIG buying Everest) also impacts available capacity.
• PRICING: Stable. Average primary D&O premium change in 2H 2025 is -1%. Average change in total premium assuming same limit, retention, structure was -1.8%.
• RETENTIONS: Stable. Retentions have remained consistent for the past few years with insureds accepting minimum retentions of $1.5M to $2.5M, meaning insureds will absorb the costs of most merger objection suits.
• COVERAGE: Stable to Increasing. Coverage continues to be broad with some insurers introducing new forms with less exclusions than those found on traditional D&O policies. Coverage for entity investigations is becoming more common, but the wording varies dramatically from carrier to carrier.
• OUTLOOK: Stable.  AM Best revised its outlook for the US D&O market from Negative to Stable due to moderating reductions in pricing, improved underwriting ratios, tighter underwriting risk selection and decreasing regulatory scrutiny.

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CAC is now part of The Baldwin Group

The Baldwin Group and CAC are stronger together. Together we deliver more specialization, more capabilities, and deeper expertise to our clients.  To view Baldwin’s comprehensive 2026 State of the Market & Outlook view here.