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Global (re)insurance: Nine-month results impacted by nat cats, but growth and underlying profitability are robust

Insurance Consulting and Technology|Reinsurance

November 23, 2021

Willis Re continues to monitor global (re)insurers’ financial health.

We are pleased to share with you Willis Re’s latest assessment of global (re)insurers’ financial health. This short report summarises key themes emerging from global (re)insurers’ results for the first nine months of 2021 and has been prepared by Willis Re’s Strategic and Financial Analytics teams.

Key takeaways:

  • Pricing and improving economies drove robust premium growth, with half of the (re)insurers reporting a double-digit increase YTD.
  • Strong combined ratios continued through 9M 2021, despite higher cat losses in Q3, with an average combined ratio of 96%.
  • European market solvency at 9M 2021 improved to 220% (year-end 2020: 209%) due to significant market tailwinds as well as retained profits. Sector solvency is now at the upper end of management guidance levels and is supportive of improved capital returns in 2022.
  • On the back of these results, consensus earnings estimates have continued to march up, driven by a more optimistic view of volumes and underlying attritional loss ratios; the average increase was just over 1%.
  • We expect continued heightened attention to nat cat perils – exposure, reinsurance protection and pricing – and what constitutes ‘normal’ nat cat losses.

Managing Director, Strategic and Financial Analytics
Willis Re

Executive Vice President, Strategic and Financial Analytics
Willis Re

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