The U.S non-life reinsurance market

The local U.S market has a high number of non-life reinsurers. However, 25 of them account for 99% of total written premiums. Among these 25 are local American companies and foreign companies or groups licensed in the United States, such as Munich Reinsurance America, Swiss Reinsurance America, etc.

USAAccording to the RAA, the gross turnover of the local property-casualty reinsurance market amounted to 80 billion USD in 2021, with net earned premiums of 75.7 billion USD and net incurred losses of 56.2 billion USD. Companies are accepting American direct insurance premiums and premiums from other markets, with local underwriting remaining the majority of the business.

U.S. reinsurers' results remain dependent on natural catastrophes. Both 2017 and 2011 with combined ratios of 108.4% and 107.1%, respectively, saw a high number of tornadoes and hurricanes.

For the market as a whole, the 2021 net loss to premium ratio was 74.2% against 75.8% in 2020. With loadings of 25%, the industry had a combined ratio of 99.2% in 2021, down 2.2 points from the previous year.

It should be noted that the loadings applied by reinsurers, that is, the management and distribution fees, have globally decreased over the last few years. This decline of 2 to 6 points depending on the year indicates a positive reaction by reinsurers who have reduced their charges to cope with a growing claims experience.

The U.S non-life reinsurance market: Evolution of ratios (2010-2021)

YearLoss ratioCombined ratio
202174.20%99.20%
202075.80%101.40%
201974.90%100.50%
201878.30%103.30%
201783.10%108.40%
201669.00%96.00%
201565.70%92.30%
201468.80%91.00%
201355.80%86.80%
201265.90%96.20%
201176.80%107.10%
201063.60%94.50%

Source: RAA Industry results

Performance of the American non-life reinsurers

The American reinsurance industry is dominated by National Indemnity, a subsidiary of Berkshire Hathaway. This company alone controls 37% of the market, that is, 30.1 billion USD out of 80 billion realized by the entire industry in 2021. In second position is the Bermudan Everest Re, accounting for 7.7 billion USD and a market share of 9.6%, far behind National Indemnity. Munich Re America, the first European reinsurer, has realized 7.4 billion USD.

The breakdown by reinsurer shows a slight improvement of the combined ratios of the majority of the companies on the market in 2021. Only 12 reinsurers out of 25 were below the 100% combined ratio in 2021. There were 8 below 100% in 2020. XL Reinsurance America Inc. has achieved the greatest improvement in combined ratio with a 23.8 point drop from 2020 to 2021.

In thousands USD

CompaniesNet premiumsLoss ratioCombined ratio
202120202021202020212020
National Indemnity Co.30 189 99027 211 20079.7%76.7%96.9%95.2%
Everest Reinsurance Co.7 736 5356 664 47373.3%72.2%100.0%98.7%
Munich Reinsurance America Inc7 481 3215 164 24978.1%77.0%112.8%113.0%
Transatlantic Reinsurance Co.5 028 1854 508 95068.5%72.6%99.5%104.6%
Odyssey Group4 458 9433 516 91571.4%69.0%97.6%96.0%
General Reinsurance Corp.4 097 5103 785 85067.6%79.8%94.4%105.4%
Swiss Reinsurance America Corp3 435 1943 136 98073.8%85.5%104.0%116.2%
Partner Re Co. of the U.S.2 289 5202 106 25666.3%78.3%98.7%107.5%
SCOR Reinsurance Co.2 280 8832 194 82969.3%74.9%102.4%108.6%
XL Reinsurance America Inc.2 026 1362 127 03369.6%86.4%89.2%113.0%
Endurance Assurance Corp.1 915 3651 591 56062.3%68.0%94.7%98.1%
Markel Global Reinsurance Co.1 429 5261 143 66961.1%71.6%94.1%104.7%
Hartford Steam Boiler Inspctn1 359 3441 128 03431.4%32.5%84.1%87.1%
Allied World Insurance Co.1 139 449854 61271.2%72.7%91.0%96.3%
Renaissance Re U.S. Inc.1 036 729746 41977.5%-27.3%101.7%109.8%
Arch Reinsurance Co.857 590709 52266.8%79.6%94.6%106.0%
AXIS Reinsurance Co.797 592673 04876.0%73.8%107.2%105.2%
Toa Reinsurance Co. of America629 364579 29687.4%90.3%116.7%119.8%
SiriusPoint America Insurance Company616 681397 97272.7%66.4%104.7%97.6%
American Agricultural Ins Co.465 688419 58180.4%83.6%97.7%101.2%
Dorinco Reinsurance Co.235 369205 02995.4%82.3%112.1%101.8%
QBE Reinsurance Corp.227 984201 08675.6%85.0%101.6%113.6%
EMC Reinsurance Co.204 244195 701104.7%126.9%125.3%148.9%
Shelter Reinsurance Co.138 39113 11375.9%54.8%101.1%80.6%
RenaissanceRe Europe AG3297 785-2591.5%84.3%-1274.1%-24.0%
Total Reinsurers80 077 86069 401 17874.2%75.8%99.2%101.4%

Source: RAA 2021 Industry results

Results of the U.S reinsurance market

The best performing reinsurer in terms of underwriting result for 2021 was National Indemnity Co. with 735.2 million USD, nonetheless with a negative evolution of -34.3%. It is followed by XL Reinsurance America Inc. and Hartford Steam Boiler with respectively 230.9 million USD and 138.2 million USD.

As far as net income is concerned, National Indemnity Co. was once again leading the ranking with a net income of 10.049 billion USD, down by -21% compared to 2020. It was followed by Transatlantic Reinsurance Co. and Everest Reinsurance America with 449.9 million USD and 336 million USD respectively.

In thousands USD

CompaniesUnderwritting resultsNet results
2021202020212020
National Indemnity Co.735 2281 119 87010 049 13012 721 181
XL Reinsurance America Inc.230 909-301 265271 52826 921
Hartford Steam Boiler Inspctn138 177117 92214 26314 654
General Reinsurance Corp.136 812-244 026292 624292 685
Allied World Insurance Co.55 9467 33173 433-69 789
Transatlantic Reinsurance Co.55 717-268 089449 94395 891
Endurance Assurance Corp.35 776-75 50465 589-39 222
Markel Global Reinsurance Co.30 519-68 59559 8866 234
Arch Reinsurance Co.16 994-5 46237 123-13 556
American Agricultural Ins Co.10 305-4 85550 96352 757
Partner Re Co. of the U.S.2 513-145 95372 53939 594
RenaissanceRe Europe AG492-8 0979 57340 014
Shelter Reinsurance Co.-62525 15912 93334 516
Odyssey Group-4 64980 70594 289-108 039
QBE Reinsurance Corp.-6 529-29 081737-23 823
Dorinco Reinsurance Co.-28 944-2 05927 35572 607
Renaissance Re U.S. Inc.-46 62328 3657 36617 403
EMC Reinsurance Co.-51 754-96 691-13 389-47 836
SiriusPoint America Insurance Company-66 824-5 85128 86717 445
SCOR Reinsurance Co.-69 543-212 48121 034-63 483
AXIS Reinsurance Co.-73 981-3 152-1 19647 777
Toa Reinsurance Co. of America-107 376-115 939-1 495-15 518
Everest Reinsurance Co.-145 72821 518336 058595 077
Swiss Reinsurance America Corp-155 882-538 86459 981-4 155
Munich Reinsurance America Inc-1 175 821-708 585-729 998-18 581
Total Reinsurers-522 302-1 584 07711 417 50213 840 303

Source: RAA 2021 Industry Results

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