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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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 Sate of the Market & Outlook view here.