Data compiled by Litmus Analysis shows that the largest four European reinsurers – Hannover Re, Munich Re, SCOR and Swiss Re, grew their combined portfolio by 10% at the January 2022 renewals.
Source: Litmus Analysis
This is a 5% portfolio growth from last year’s January renewals, however certain reinsurers’ portfolios grew by an even further amount, Swiss Re’s by 6% and Munich Re with a much larger 14%.
Analysts at Litmus said these results presented a more consistent picture compared to last year, with each company growing its renewed book.
The four firms took advantage of attractive market conditions, which they expect to persist through 2022.
Between these four reinsurers, €31.9 bn of treaty reinsurance premiums were up for renewal of which 9% were cancelled or replaced, giving a total of €29.1 bn which was renewed.
A 9% increase at renewal represents both the effect of price changes and increases in shares on treaties.
The data also showed that new business contributed an additional 10%, benefiting from growth across virtually all core business lines.
Litmus also stated that each of the four companies in their study reported an overall increase in risk-adjusted pricing, ranging from 0.7% for Munich Re, to 4.9% for SCOR, with price increases across almost all lines and territories, especially on loss-affected business.
Terms and conditions were said to have tightened this year.
