2024 second consecutive year of ‘very strong’ P&C results for large global reinsurers: Fitch

According to a new peer group credit analysis, sustained underwriting results and investment income made 2024 the second consecutive year of “very strong” property and casualty (P&C) financial performance in a prolonged favourable market.

The insurers in this peer group are some of the largest in the industry, including Hannover Re, Lloyd’s of London, Munich Re, PartnerRe, SCOR, and Swiss Re.

According to Fitch’s analysis, the average reported return on equity was very strong, at 14% in 2024, down from the 2023 cycle peak of 20%.

P&C reinsurance benefited from the continuation of favourable terms and conditions at renewals, and lower-than-budgeted large losses in 2024.

Meanwhile, life and health performances were strong overall, except for SCOR, which was hit by adverse changes in reserving assumptions.

Investment results improved for all insurers amid another year of elevated bond yields, and although weaker than 1Q24, 1Q25 earnings remained strong overall, supported by solid underlying performance across most business lines that helped offset Los Angeles wildfire losses.

Fitch also disclosed that the solvency coverage of large global reinsurers was broadly stable in 2024, well above target ranges for most, with the largest buffers at Munich Re and Hannover Re.

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