Europe's leading reinsurers achieve better-than-expected quarterly results

A Fitch Ratings report indicates that Europe's four leading reinsurers - Munich Re, SCOR, Swiss Re and Hannover Re - have posted better-than-expected financial results for the first quarter of 2023. These figures were achieved despite a high natural catastrophe loss experience during the first three months of the current financial year.

The reinsurance companies' improved performance is attributable to favorable financial market conditions, rate increases during recent renewals and higher investment income.

Munich Re, however, was the only one of the four reinsurers to report an increase in its combined ratio. This was mainly due to the heavy cost of the Turkey earthquake.

Still according to the rating agency, the switch to the new IFRS 17 standards by insurance market players has led to varying discount effects, making the comparison between companies tricky.