Fitch Ratings just dropped its peer review on the top global reinsurers – Hannover Re, Lloyd’s, Munich Re, PartnerRe, SCOR, Swiss Re.
P&C performance in 2024 was the standout. The group logged its second straight year of strong results, thanks to underwriting discipline and solid investment returns.
According to the analysis, reserves still look cautious, giving them room to iron out results and smooth earnings over the medium term.
Reported return on equity averaged 14% in 2024, a step down from the 20% peak seen in 2023, but still robust.
Terms at reinsurance renewals stayed favorable, while large loss experience came in below budget. Life and health lines also showed strong profitability, Fitch Ratings says.
The picture in 2025 turned more uneven. First quarter numbers slipped compared with Q1 last year, hit by losses tied to the Los Angeles wildfires.
Still, Fitch noted that earnings held up, with solid underlying performance across most businesses offsetting catastrophe impacts.
Strong capital generation has also allowed growth and shareholder payouts to keep flowing. The agency puts every peer but PartnerRe in the top tier of global reinsurers by profile and revenue.
The question now is sustainability. Markets are already softening from the 2023 highs, and Fitch’s findings arrive as analysts debate how long reinsurer profitability can hold heading into 2026.
J.P. Morgan research suggests Europe’s giants often outperform even when conditions turn weaker, but pricing pressure at the January renewals looks inevitable.
If catastrophe losses stay light through year-end, property and property-cat pricing could ease further into 2026.
Solvency coverage of the large global reinsurers was broadly stable in 2024, well above target ranges for most, with the largest buffers at Munich Re and Hannover Re.
Strong operating capital generation enabled growth and capital returns to shareholders. Fitch Ratings’ Prism Global model scores remained at least ‘Strong’ at end-2024.
According to Fitch’s recent survey of European reinsurers, the primary motivation for investing in private assets is higher returns through illiquidity premiums, which was cited by all respondents.
Appetite for private credit was generally higher among life reinsurers and non-life and reinsurance firms with meaningful long-dated liabilities.
Portfolio diversification was the second most common reason, cited by 73% of respondents. Other major motivations include ESG considerations, liability matching, and access to innovative/bespoke asset structures not available in public markets.
Respondents also cited hedging against market volatility and operating-capital generation.
