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Global (re)insurance: Q1 trends generally favourable, driven by positive pricing momentum

Insurance Consulting and Technology|Reinsurance
COVID 19 Coronavirus|Insurer Solutions

June 17, 2021

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

We are pleased to share with you this short report which summarizes key themes emerging from global (re)insurers’ 2021 Q1 results and has been prepared by Willis Re’s Strategic and Financial Analytics teams.

The key takeaways are:

  • Most (re)insurers achieved meaningful premium growth in Q1 2021, with rate momentum in reinsurance and commercial lines trumping any residual COVID-19 volume pressure.
  • While a number of (re)insurers reported improved ex-cat accident year combined ratios, due to favourable pricing conditions, the Texas winter storm dented several headline combined ratios.
  • European solvency ratios expanded again in Q1, with the main driver being an inflation related rise in risk-free interest rates. Solvency ratios have now generally regained their end-2019 pre-COVID levels.
  • Possibly the most telling take-away from the Q1 results season is that consensus earnings estimates nudged up slightly, with rate momentum, premium growth and the investment yield outlook all contributing to the slightly more positive outlook.

Brian Shea
Managing Director, Strategic and Financial Analytics
Willis Re

Ralph Cagnetta
Executive Vice President, Strategic and Financial Analytics
Willis Re

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