Moody’s Investors Service, the international credit rating agency and provider of financial research, highlights that the eight leading Nordic property and casualty (P&C) insurers reported outstanding underwriting results in 2025.
The sector’s average combined ratio, which represents claims and operating costs as a proportion of insurance revenue, declined to 84.8% from 89.5% in 2024, reaching a record low. This improvement reflected a combination of favourable claims experience, generally mild weather conditions, and a reduction in large-loss events for most insurers.
Strong revenue growth, primarily driven by price increases aimed at offsetting rising claims costs, also contributed to the positive performance. Moody’s anticipates that underwriting results will remain solid in 2026, although easing pricing momentum and a return to more typical natural catastrophe claims may dampen premium growth and slightly weaken combined ratios.
Enhanced underwriting outcomes lifted overall profitability, further supported by healthy investment returns. Capitalisation across the leading Nordic P&C insurers remained robust, showing a modest improvement on 2024. Publicly listed insurers returned significant amounts of capital to shareholders, including through share buybacks and special dividends, while maintaining strong solvency positions. Moody’s assessment of this group underpins its stable outlook for the Nordic P&C market.
All eight major insurers, representing over 70% of the market, reported year-on-year declines in combined ratios, with six achieving levels below 85%, benefiting from particularly favourable underwriting conditions. Some non-publicly listed insurers, which had previously lagged due to slower price adjustments, also recorded recovery in 2025, though improvements were uneven.
The average loss ratio fell to 65.4%, helped by fewer large claims and a lighter burden from natural catastrophe events compared with 2024. Reserve releases continued to support results, though some insurers strengthened reserves in specific lines while others added additional prudence thanks to strong profitability.
Operating expenses were broadly stable at 19.4% of revenue. Strong top-line growth and disciplined cost management offset rising investment in technology and operational efficiency, although some companies faced higher expenditure linked to integration or digital initiatives. The combination of improved underwriting and supportive financial market conditions lifted pre-tax profits by around 24% compared with 2024.
Revenue growth averaged 7.9% in 2025, slightly below 2024’s 8.9%, largely supported by price increases and strong customer retention. Norway led premium growth, while other Nordic markets recorded more moderate increases. Private lines outperformed commercial lines, which faced intense competition and a continued focus on profitability. As claims inflation and frequency stabilise, the scope for further price rises is expected to narrow in 2026, with growth increasingly dependent on disciplined expansion of exposure rather than aggressive pricing.
Capitalisation remained strong, with Solvency II ratios ranging from 174% to 280%, slightly higher than in 2024. Robust capital generation and favourable market conditions underpinned solid solvency positions, and publicly listed insurers continued to return earnings to shareholders while maintaining strong financial foundations. Moody’s expects leading Nordic P&C insurers to sustain resilient capital levels and maintain prudent underwriting strategies over the coming year.
