Largest European reinsurers, Munich Re, Swiss Re, and Hannover Re, saw further improvements in earnings in 2024, driven by better underwriting results across most business lines. SCOR reported a loss due to unfavourable changes in its life and health insurance reserving assumptions, according to Fitch Ratings and AM Best.
Higher return on investments boosts earnings for reinsurers
Fitch Ratings believes largest European reinsurers are well-positioned to handle potentially less favourable market conditions. Their credit ratings remained stable in the ‘AA’ and ‘A+’ range.
Reinsurers reported a solid average return on equity of 15.5% in the first half of 2024, though slightly below the 20.5% achieved in the same period of 2023 (see TOP 50 World’s Largest Reinsurance Groups).
The group’s reported property and casualty reinsurance combined ratio averaged 84.2%, meeting 2024 targets. This marks a 1.8pp improvement from the prior year, driven by sustained pricing level and fewer large losses.
TOP 10 Largest Reinsurers in Europe (Life & Non-Life)
| № | Reinsurers | GWP, mn $ | NWP, mn $ |
| 1 | Munich Re | $51,331 | $48,550 |
| 2 | Swiss Re | $39,749 | $37,302 |
| 3 | Hannover Re | $35,528 | $29,672 |
| 4 | SCOR | $21,068 | $17,055 |
| 5 | PartnerRe | $8,689 | $7,544 |
| 6 | MAPFRE Re | $3,849 | $3,273 |
| 7 | Assicurazioni Generali | $3,822 | $3,822 |
| 8 | AXA XL | $3,385 | $2,812 |
| 9 | R+V Versicherung | $3,158 | $3,158 |
| 10 | Caisse Centrale de Reassurance | $2,206 | $2,007 |
| TOTAL | $172,785 | $155,195 |
Fitch expects the reinsurance pricing and profit margins to peak in 2024, as risk-adjusted price increases have begun to level off in recent renewals.
Munich Re, Swiss Re and Hannover Re saw strong life and health reinsurance results. Hannover Re and Munich Re benefited from positive experience variances, which supported its reinsurance service results.
European reinsurers’ capitalisation remained very strong
Fitch noted that reinsurers’ capitalisation remained very strong. All the main reinsurers maintained or further improved a very strong capital adequacy at 2024.
Strong earnings generation and positive market effect broadly offset capital deployment for new business and higher capital requirements.
Munich Re, Hannover Re and Swiss Re’s solvency ratios are significantly above their target ranges, as we enter the height of the hurricane season.
