New Survey: Commercial Insurance Market Holds Steady in Q1, but The Baldwin Group Advises Preparedness as Conditions Evolve

Cyber, Management Liability, and Workers' Compensation Pricing Remain Stable, While Momentum Behind Pricing Declines in Property Builds; Commercial Auto and Umbrella Lines Face Continued Pressures

The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin") (NASDAQ:BWIN) and its affiliates, issued its Q1 2025 Market Pulse Report showing signs of continued resilience across much of the commercial insurance landscape, although underlying pressures could test market stability later this year.

Across The Baldwin Group's book of business, cyber, management liability, and workers' compensation lines maintained relative stability through the first quarter of 2025. Innovations in underwriting, sustained carrier capacity, and moderating loss trends contributed to a favorable environment for insureds in these segments.

In contrast, commercial auto and umbrella lines continue to show signs of loss cost pressure with pricing continuing its upward trend. Both saw over 10% year-over-year increases, driven by entrenched loss trends, rising repair costs, and social inflation. The property insurance market is showcasing the resilience of the commercial insurance marketplace broadly with a year-over-year deceleration in rate increases (from +13.2% in Q1 2024 to +3.0% in Q1 2025), despite ongoing climate-driven loss activity. Clients with exposure to peak catastrophe zones should remain vigilant to account-specific reversal of these trends after a series of early-year natural disasters, including California's January wildfires that significantly impacted catastrophe budgets.

"The market is stable in many areas but is not without its challenges," said Trevor Baldwin, Chief Executive Officer of The Baldwin Group. "Our focus remains on helping clients stay ahead of shifting conditions—whether by reassessing coverage structures, finding opportunities to mitigate cost pressures, or strengthening overall resilience strategies for growth."

Favorable reinsurance renewals, broader market competition, and expanded capacity from MGAs and the London market contributed to recent softening trends, particularly in property. However, Baldwin notes that continued climate volatility, inflation, and evolving regulatory factors could influence the market trajectory over the remainder of 2025.

The Baldwin Group's latest State of the Market report also highlights forward-looking concerns such as supply chain disruption, third-party litigation funding trends, and the potential impact of new tariffs on insurance claims costs.

"Clients have an important window right now to optimize their programs and prepare for potential shifts ahead," Trevor Baldwin added. "Strategic adjustments today can help protect against volatility that may emerge later in the year."

For more details, access the full Q1 2025 Market Pulse Report and the State of the Market report at www.baldwin.com.

ABOUT THE Q1 2025 MARKET PULSE REPORT

The Baldwin Group's Market Pulse report offers a detailed overview of high-level pricing trends within The Baldwin Group's book of business by quarter since 2021. It serves as an invaluable tool for stakeholders to glean insight into insurance price movement and the dynamics affecting premium costs. Please note that this report should be used as a guide and does not constitute individualized financial advice.

ABOUT THE BALDWIN GROUP

The Baldwin Group, the brand name for The Baldwin Insurance Group, Inc. ("Baldwin") (NASDAQ:BWIN) and its affiliates, is an independent insurance distribution firm providing indispensable expertise and insights that strive to give our clients the confidence to pursue their purpose, passion, and dreams. As a team of dedicated entrepreneurs and insurance professionals, we have come together to help protect the possible for our clients. We do this by delivering bespoke client solutions, services, and innovation through our comprehensive and tailored approach to risk management, insurance, and employee benefits. We support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our organic and inorganic growth. The Baldwin Group proudly represents more than three million clients across the United States and internationally. For more information, please visit www.baldwin.com.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release may contain various "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Baldwin's expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address Baldwin's future operating, financial or business performance or Baldwin's strategies or expectations. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "projects," "potential," "outlook" or "continue," or the negative of these terms or other comparable terminology. Forward-looking statements are based on management's current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption "Risk Factors" in Baldwin's Annual Report on Form 10-K for the year ended December 31, 2024 and in Baldwin's other filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available free of charge on the SEC's website at: www.sec.gov, including those risks and other factors relevant to Baldwin's business, financial condition and results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Baldwin or to persons acting on Baldwin's behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Baldwin does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

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MEDIA RELATIONS

Anna Rozenich, Senior Director, Enterprise Communications, The Baldwin Group

630.561.5907 | [email protected]

INVESTOR RELATIONS

Bonnie Bishop, Executive Director, Investor Relations, The Baldwin Group

813.259.8032 | [email protected]