Decreasing 2017 profits for the top 5 global reinsurers

At the time of issuance of balance sheets, the main insurance and reinsurance groups posted 2017 results affected by a sharp increase in loss experience.

Several large-scale events: hurricanes, earthquakes and floods which occurred in the second half of 2017 resulted in economic losses of about 330 billion, 135 billion USD of which estimated insured losses.

reinsurers' results in 2017

Munich Re, Swiss Re, Hannover Re, Scor and Berkshire Hathaway were not spared. Their cumulative profit is in sharp decline. From 9.530 billion USD recorded in 2016, this figure dropped to -1.820 billion USD in 2017,that is a decline in profits of 11.350 billion USD in one year.

Regarding technical results, combined ratios exceeded 100% for Munich Re (114.1%), Swiss Re (111.5%) and Scor (103.7%). As for Hannover Re, this indicator deteriorated by 6.1 points but remains below 100%(at 99.8%).

The overall premiums underwritten by reinsurance majors have also increased by 18.64%. Except for Swiss Re, which posted a 2.37% decline in turnover, Munich Re, Hannover Re, Scor and Berkshire Hathaway recorded double-digit growths of between 14 and 73.97%.

The combined shareholder’s equity of the top five reinsurers has also improved by 17.9% to settle at 438.614 billion USD.

Top 5 global reinsurers: main technical highlights (2016-2017)

Turnover

in millions USD
 2017 turnover2016 turnover2016/2017 evolution
Munich Re
37 82133 15414%
Swiss Re
3477535 622-2.37%
Berkshire Hathaway(1)
24 212(2)13 91773.97%
Hannover Re
21 31317 23223.68%
Scor group
17 71814 56921.6%
Total
135 839114 49418.64%
(1) Figures from the 2017 annual report
(2) The 2017 revenue includes 10.2-billion aggregate excess-of-loss retroactive reinsurance agreement whith all AIG's subsidiaries

Shareholder's equity

in millions USD
 2017 shareholder's equity2016 Shareholder's equity2016/2017 evolution
Berkshire Hathaway(1)
351 954285 42823.3%
Swiss Re
34 29435 716-3.98%
Munich Re
33 78233 4930.86%
Hannover Re
11 12610 2648.39%
Scor group
7 4587 0555.7%
Total
438 614371 95617.9%
(1) Shareholder's equity of the group

Net result

in millions USD
 2017 net result2016 net result2016/2017 evolution
Hannover Re
1 1481 650-30.42%
Scor
343640-46.41%
Swiss Re
3313 558-90.6%
Munich Re
1442 670-94.6%
Berkshire Hathaway
-3 6481 012-460%
Total
-1 8209 530-119%

Combined ratio

 2017 combined ratio2016 combined ratio2016/2017 evolution
Hannover Re
99.8%93.7%+6.1 points
Scor
103.7%93.1%+10.6 points
Swiss Re
111.5%93.5%+18 points
Munich Re
114.1%95.8%+18.3 points
Berkshire Hathaway
-89.4%-

Note:

Swiss Re has incurred a significant loss of 4.7 billion USD related to the 2017 natural disasters.

Munich Re: Compensation related to these events amounted to 3.7 billion EUR (4.43 billion USD), 2.7 billion EUR (3.23 billion USD) of which caused by Harvey, Irma and Maria hurricanes.

Berkshire Hathaway suffered an estimated loss of 2.4 billion USD due to the events of the past year.

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