Following our recent commentary on the Bermuda market, Benfield has released its quarterly report (see here) on the market. The report notes that Bermuda insurers and reinsurers are maintaining their financial strength and underwriting discipline despite a market that is drifting downward. The consensus view appeared to settle on rates falling by between 5% and 15% overall. An aggregate combined ratio of 87.2% reflected not only a lack of any significant losses but, also reserve releases from all but two BBQ players. Despite a softening in the pricing environment, Bermuda appears well positioned to face the rigours of the forthcoming season. The soft market has arrived, and reserve releases are but one sign.