Reinsurance News

Fitch highlights strong 9M earnings from Europe’s top 4 reinsurers

15th November 2021 - Author: Charlie Wood

Europe’s four biggest reinsurers are said to have demonstrated strong earnings improvements over the course of 2021’s first nine months, despite what was a period of heavy catastrophe losses for the sector.  

Fitch-RatingsFitch Ratings’ analysts explained how Munich Re, Swiss Re, Hannover Re and SCOR all posted significantly lower COVID-19 related non-life claims; enough to have more than offset the above-budget natural catastrophe impacts.

In fact, premium growth across the property and casualty reinsurance space, driven by rising demand and increased risk appetite, is said to have reached double digits, mirroring an increasing demand and appetite for risk.

Fitch added that very strong capital adequacy, partially achieved by the issuance of subordinated debt, has been effective in encouraging growth ambitions with strong backing.

Life and health reinsurance across the four firms felt a notable impact from the pandemic, with an average of 7% in net earned premiums needed to cover excess mortality claims.

Fitch reiterated what it sees as a fundamentally improving sector outlook for global reinsurance, and an expectation that financial performance will continue to improve in 2022, driven by rising prices in a hardening market environment and a higher economic activity.

Print Friendly, PDF & Email

Recent Reinsurance News