Analysts at Fitch Ratings say that, for life and health reinsurers overall, net premiums earned declined slightly in the first half of 2019, although five of the eight companies monitored by the firm reported higher net premiums earned.
Meanwhile, pre-tax income for life and health reinsurance business decreased somewhat in 1H19 as Australian disability income results negatively hit the sector.
Munich Re, Hannover Re, SCORand Reinsurance Group of America Inc. also reported earned premium increases, Fitch says, but at a mid-to-low single digit levels.
Berkshire Hathaway and Mapfre Re reported double-digit earned premium decreases, while Swiss Re posted a slight earned premium decline.
The 1H19 pre-tax income of the life reinsurance operations tracked by Fitch decreased by 4.2% compared with a year earlier (1.0% decrease assuming constant exchange rates).
This decline was driven by an increase in disability benefit liabilities in Australia from higher claims for companies across the industry, partially offset by positive claims experience in most other markets.
The life reinsurance model also demonstrated its ability as capital accumulator as Reinsurance Group of America Inc. had the largest growth in shareholders’ equity at 26.7% to $10.7 billion, as the company had $2 billion of 1H19 net unrealised investment gains, primarily from fixed maturity securities.