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According to data published by Atlas Magazine (1), the technical results of the 39 American and Bermudan reinsurers improved significantly in 2023. The North American market achieved excellent results despite a moderate increase in turnover (2%).
The slowdown in premium growth in 2023 is accounted for by the abundance of existing capacity on the market upon the latest renewals. Such abundance has exerted strong downward pressure on rates, even in lines with high claims experience.
(1) Source: "2025 Atlas Reinsurance Reports", studies published by Atlas Magazine relating to Europe, US-Bermuda, Asia, Africa-Middle East zones and compiling data from 143 reinsurers.
American and Bermudan reinsurance market: main indicators 2014-2023
Figures in millions USD
| 2014 | 2018 | 2022 | 2023 | 2014-2023 evolution (1) | |
|---|---|---|---|---|---|
| Gross premiums | 61 464 | 86 150 | 148 790 | 152 193 | 10.60% |
| Share capital | 112 234 | 74 191 | 88 661 | 96 262 | -1.70% |
| Shareholder’s equity | 369 071 | 510 663 | 648 181 | 778 924 | 8.65% |
| Net result | 14 631 | 8 200 | -3 820 | 35 447 | 10.30% |
| ROE | 3.96% | 1.61% | -0.59% | 4.55% | - |
| Loss ratio (2) | 53.80% | 69.40% | 63.90% | 56.40% | - |
| Combined ratio (2) | 87.40% | 101.70% | 91.40% | 85.10% | - |
(1) Average annual growth rate
(2) Source AM Best for the loss ratio and the combined ratio
Turnover of the American and Bermudan reinsurance market
Over the past ten years, the combined turnover of US and Bermudan reinsurers has more than doubled, rising from 61.464 billion USD in 2014 to 152.193 billion USD in 2023.
The market share of these reinsurers has also risen sharply. From 30% of worldwide premiums in 2014, this zone will control 40% of underwriting in 2023, a gain of 10 points in ten years.
American and Bermudan reinsurance market: 2023 profitability
Following the large-scale natural disasters that heavily impacted 2021 and 2022, American and Bermudan reinsurers were relatively spared in 2023.
As a result of the setbacks of previous years, reinsurers in this region have adopted a cautious approach to risk by restructuring their natural catastrophe programs, with a sharp reduction in capacity. They then imposed a stricter underwriting discipline.
This combined approach to the market has resulted in a much lower, manageable loss experience. In addition, the high return on investment only improved the technical result, hence the strong profitability recorded in 2023.
Net result for the Americas & Bermuda zone has risen from a net loss of 3.820 billion USD in 2022 to a net profit of 35.447 billion USD.
In a single year, ROE has risen from -0.59% in 2022 to 4.55% in 2023. ROE of 4.55% is the highest in ten years.
Such results have enabled reinsurance companies to rebuild their shareholders' equity (778.924 billion USD) to levels never before achieved.
American and Bermudan reinsurance market: technical ratios
After the combined ratio peaked at 101.3% in 2020 following Covid-19, all technical indicators have improved significantly since then. The combined ratio in 2023 is 6.3 points higher than in 2022.
Following the same trend, the loss ratio of 56.4% in 2023 reached its lowest level since 2015 (55.4%). This loss ratio is 7.5 points lower than that of 2022.
Top 10 reinsurers in the Americas & Bermuda zone
The US reinsurance market is clearly dominated by Berkshire Hathaway, with premium income of 27.453 billion USD in 2023, or 18% of the zone's total underwriting. The second-largest reinsurer, Reinsurance Group of America RGA, which specializes in life insurance, has generated just 15.758 billion USD in 2023, accounting for 10.4% of the total American & Bermudan market.
As in the European market, the reinsurance market in America and Bermuda is highly concentrated, with the top ten reinsurers accounting for almost 74% of total underwriting in the region. The other 29 players share the remaining 26%.
The same top 10 account for 87% of shareholders' equity and 64% of net result.
Read also | Top 10 reinsurers in the Americas-Bermuda Zone
