Lower natural catastrophe losses, a better investment result and strong revenue growth in property and casualty reinsurance led to strong increases to the four main European reinsurers’ earnings in 9M 2023 from the same period last year, according to Fitch Ratings.
On average, Fitch said, the big four reinsurers – Munich Reinsurance Company (Insurer Financial Strength (IFS): AA/Stable), Swiss Reinsurance Company Ltd (IFS: A+/Stable), Hannover Rueck SE (IFS: AA-/Stable) and SCOR SE (IFS: A+/Stable) – showed mid-single-digit revenue growth in property and casualty reinsurance on the back of rising prices, higher demand and an increased risk appetite.
The growth ambitions have been backed by a very strong capital adequacy in 2023 thanks to better profitability.
Life and health reinsurance activities improved earnings due to a better technical result, including lower Covid-19-related mortality claims.
Fitch has maintained its ‘improving’ fundamental sector outlook for global reinsurance to reflect an expectation that the sector’s underlying financial performance will continue to improve in 2024. Price discipline and higher reinvestment yields will continue to support earnings.