Aon’s latest Insurance Risk Study has identified “many desirable areas for profitable growth” in the global property casualty re/insurance market, based on favourable combined ratios and variation in results across different countries.
The study, now in its 14th year, focuses on many issues related to risk, encompassing the growth dynamics, emerging risks, and operational challenges for re/insurers around the world.
Aon found that property casualty business again produced an overall underwriting profit in 2018 with a combined ratio of 98.9%, an increase over last year’s 98.8% combined ratio.
Europe averaged a combined ratio of 96.0%, while Asia Pacific came in at 100.8% and the Americas at 97.9%.
Additionally, in 24 of the top 50 markets, Aon reported that combined ratios were below 95%, and 10 countries were below 90%, compared to 24 and nine counties last year.
Seven countries also showed five-year premium growth of more than 10%, led by very strong growth in China, analysts noted.
At year-end 2018, global premium stood at an all-time high of $5.5 trillion, representing an increase of 5.1% over the prior year.
Property-casualty premium increased by 3.4%, life & health premium increased by 6.0%, and reinsurance premiums grew by 2.9%.
Global capital increased 1.3 percent year on year to $4.4 trillion, while reinsurance capital fell 3.3%, according to Aon.
Property casualty penetration remained flat at 1.9% of GDP last year, with auto insurance accounting for 49% of premium, followed by property accounts at 31% and liability at 20%.
