The reinsurance sector delivered a “record-high” performance overall with +23.6% total return on equity in Q1, ACORD noted in its first Global Insurance Stock Index Update of 2023.
ACORD, the global standards-setting body for the insurance industry, highlighted that the performance was likely driven by strong premium and exposure growth, improved underwriting results, robust investment gains, and added operating leverage.
The other lines of business like Property & Casualty (P&C), multi-line, life re/insurance also experienced above-average returns.
The first quarter update revealed a positive year-over-year return of +2.9% for the insurance industry, while global equity market saw a decline of -9.1%, ACORD noted.
“The strong performance of the insurance industry in the first quarter of 2023 is a testament to the industry’s tremendous resiliency – and digitalization continues to play a crucial role,” said Bill Pieroni, ACORD President and CEO.
“The results further validate the need for insurance stakeholders to embrace the digitalization imperative so that they can better navigate the ongoing changes and opportunities in the global market,” Pieroni added.