According 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.
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The U.S non-life reinsurance market: Evolution of ratios (2010-2021)
| Year | Loss ratio | Combined ratio |
|---|---|---|
| 2021 | 74.20% | 99.20% |
| 2020 | 75.80% | 101.40% |
| 2019 | 74.90% | 100.50% |
| 2018 | 78.30% | 103.30% |
| 2017 | 83.10% | 108.40% |
| 2016 | 69.00% | 96.00% |
| 2015 | 65.70% | 92.30% |
| 2014 | 68.80% | 91.00% |
| 2013 | 55.80% | 86.80% |
| 2012 | 65.90% | 96.20% |
| 2011 | 76.80% | 107.10% |
| 2010 | 63.60% | 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
| Companies | Net premiums | Loss ratio | Combined ratio | |||
|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| National Indemnity Co. | 30 189 990 | 27 211 200 | 79.7% | 76.7% | 96.9% | 95.2% |
| Everest Reinsurance Co. | 7 736 535 | 6 664 473 | 73.3% | 72.2% | 100.0% | 98.7% |
| Munich Reinsurance America Inc | 7 481 321 | 5 164 249 | 78.1% | 77.0% | 112.8% | 113.0% |
| Transatlantic Reinsurance Co. | 5 028 185 | 4 508 950 | 68.5% | 72.6% | 99.5% | 104.6% |
| Odyssey Group | 4 458 943 | 3 516 915 | 71.4% | 69.0% | 97.6% | 96.0% |
| General Reinsurance Corp. | 4 097 510 | 3 785 850 | 67.6% | 79.8% | 94.4% | 105.4% |
| Swiss Reinsurance America Corp | 3 435 194 | 3 136 980 | 73.8% | 85.5% | 104.0% | 116.2% |
| Partner Re Co. of the U.S. | 2 289 520 | 2 106 256 | 66.3% | 78.3% | 98.7% | 107.5% |
| SCOR Reinsurance Co. | 2 280 883 | 2 194 829 | 69.3% | 74.9% | 102.4% | 108.6% |
| XL Reinsurance America Inc. | 2 026 136 | 2 127 033 | 69.6% | 86.4% | 89.2% | 113.0% |
| Endurance Assurance Corp. | 1 915 365 | 1 591 560 | 62.3% | 68.0% | 94.7% | 98.1% |
| Markel Global Reinsurance Co. | 1 429 526 | 1 143 669 | 61.1% | 71.6% | 94.1% | 104.7% |
| Hartford Steam Boiler Inspctn | 1 359 344 | 1 128 034 | 31.4% | 32.5% | 84.1% | 87.1% |
| Allied World Insurance Co. | 1 139 449 | 854 612 | 71.2% | 72.7% | 91.0% | 96.3% |
| Renaissance Re U.S. Inc. | 1 036 729 | 746 419 | 77.5% | -27.3% | 101.7% | 109.8% |
| Arch Reinsurance Co. | 857 590 | 709 522 | 66.8% | 79.6% | 94.6% | 106.0% |
| AXIS Reinsurance Co. | 797 592 | 673 048 | 76.0% | 73.8% | 107.2% | 105.2% |
| Toa Reinsurance Co. of America | 629 364 | 579 296 | 87.4% | 90.3% | 116.7% | 119.8% |
| SiriusPoint America Insurance Company | 616 681 | 397 972 | 72.7% | 66.4% | 104.7% | 97.6% |
| American Agricultural Ins Co. | 465 688 | 419 581 | 80.4% | 83.6% | 97.7% | 101.2% |
| Dorinco Reinsurance Co. | 235 369 | 205 029 | 95.4% | 82.3% | 112.1% | 101.8% |
| QBE Reinsurance Corp. | 227 984 | 201 086 | 75.6% | 85.0% | 101.6% | 113.6% |
| EMC Reinsurance Co. | 204 244 | 195 701 | 104.7% | 126.9% | 125.3% | 148.9% |
| Shelter Reinsurance Co. | 138 391 | 13 113 | 75.9% | 54.8% | 101.1% | 80.6% |
| RenaissanceRe Europe AG | 329 | 7 785 | -2591.5% | 84.3% | -1274.1% | -24.0% |
| Total Reinsurers | 80 077 860 | 69 401 178 | 74.2% | 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
| Companies | Underwritting results | Net results | ||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| National Indemnity Co. | 735 228 | 1 119 870 | 10 049 130 | 12 721 181 |
| XL Reinsurance America Inc. | 230 909 | -301 265 | 271 528 | 26 921 |
| Hartford Steam Boiler Inspctn | 138 177 | 117 922 | 14 263 | 14 654 |
| General Reinsurance Corp. | 136 812 | -244 026 | 292 624 | 292 685 |
| Allied World Insurance Co. | 55 946 | 7 331 | 73 433 | -69 789 |
| Transatlantic Reinsurance Co. | 55 717 | -268 089 | 449 943 | 95 891 |
| Endurance Assurance Corp. | 35 776 | -75 504 | 65 589 | -39 222 |
| Markel Global Reinsurance Co. | 30 519 | -68 595 | 59 886 | 6 234 |
| Arch Reinsurance Co. | 16 994 | -5 462 | 37 123 | -13 556 |
| American Agricultural Ins Co. | 10 305 | -4 855 | 50 963 | 52 757 |
| Partner Re Co. of the U.S. | 2 513 | -145 953 | 72 539 | 39 594 |
| RenaissanceRe Europe AG | 492 | -8 097 | 9 573 | 40 014 |
| Shelter Reinsurance Co. | -625 | 25 159 | 12 933 | 34 516 |
| Odyssey Group | -4 649 | 80 705 | 94 289 | -108 039 |
| QBE Reinsurance Corp. | -6 529 | -29 081 | 737 | -23 823 |
| Dorinco Reinsurance Co. | -28 944 | -2 059 | 27 355 | 72 607 |
| Renaissance Re U.S. Inc. | -46 623 | 28 365 | 7 366 | 17 403 |
| EMC Reinsurance Co. | -51 754 | -96 691 | -13 389 | -47 836 |
| SiriusPoint America Insurance Company | -66 824 | -5 851 | 28 867 | 17 445 |
| SCOR Reinsurance Co. | -69 543 | -212 481 | 21 034 | -63 483 |
| AXIS Reinsurance Co. | -73 981 | -3 152 | -1 196 | 47 777 |
| Toa Reinsurance Co. of America | -107 376 | -115 939 | -1 495 | -15 518 |
| Everest Reinsurance Co. | -145 728 | 21 518 | 336 058 | 595 077 |
| Swiss Reinsurance America Corp | -155 882 | -538 864 | 59 981 | -4 155 |
| Munich Reinsurance America Inc | -1 175 821 | -708 585 | -729 998 | -18 581 |
| Total Reinsurers | -522 302 | -1 584 077 | 11 417 502 | 13 840 303 |
Source: RAA 2021 Industry Results
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