Magazine date:
Nov 2019 Main indicators of the global reinsurance market: 2013-2018
In billions USD
| Indicator | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 5-year average |
|---|---|---|---|---|---|---|---|
Non-life net written premiums | 144.2 | 140.4 | 137.5 | 138.6 | 152.8 | 158.6 | 145.6 |
Net earned premiums | 140 | 135.7 | 135.8 | 135.8 | 151.4 | 155.9 | 143.2 |
Net investment income | 22.6 | 23 | 19 | 20.5 | 26 | 16.9 | 21.1 |
Total revenues | 232.2 | 222.5 | 213.2 | 220.6 | 244.8 | 216.8 | 223.6 |
Net result | 24.7 | 22.9 | 18.9 | 16.3 | -0.7 | 2 | 11.9 |
Shareholder's equity | 191.5 | 205.7 | 198.4 | 202.1 | 203.3 | 198.8 | 201.7 |
Loss ratio | 55.9 | 56.2 | 56.2 | 60.6 | 76.5 | 68.2 | 63.5 |
Management expenses ratio | 31.9 | 33.5 | 34.2 | 34.7 | 33.6 | 34 | 34 |
Combined ratio % | 87.9 | 89.7 | 90.4 | 95.2 | 110.1 | 102.3 | 97.6 |
Return on Equity (ROE ) in % | 13 | 11.6 | 9.5 | 8.3 | -0.3 | 1 | 6 |
Return on Revenue (ROR) in % | 10.7 | 10.3 | 8.9 | 7.4 | -0.3 | 0.9 | 5.4 |
Source : AM Best
Read also | Lloyd's market [4]
Main indicators of the top 4 European reinsurers: 2013-2018
In billions USD
| Indicator | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 5-year average |
|---|---|---|---|---|---|---|---|
Non-life net written premiums | 66.1 | 61.4 | 59.3 | 59.8 | 64.8 | 63.4 | 61.8 |
Net earned premiums | 63.6 | 60.4 | 58.4 | 58.8 | 65.3 | 63.2 | 61.2 |
Net investment income | 16.6 | 16.3 | 14.2 | 14.3 | 18.9 | 10.8 | 14.9 |
Total revenues | 148.3 | 136.1 | 129.9 | 134.7 | 146.9 | 115.3 | 132.6 |
Net result | 11.1 | 9.3 | 10 | 8.2 | 2.4 | 4.6 | 6.9 |
Shareholder's equity | 83.9 | 89.9 | 84 | 86.5 | 85.6 | 74.8 | 84.1 |
Loss ratio | 60.2 | 61.7 | 59.9 | 63.4 | 76.7 | 67.2 | 65.8 |
Management expenses ratio | 29.1 | 30.7 | 31.9 | 32.8 | 32.2 | 32.4 | 32 |
Combined ratio % | 89.3 | 92.4 | 91.8 | 96.3 | 108.9 | 99.7 | 97.8 |
Return on Equity (ROE ) in % | 13.1 | 11 | 11.5 | 9.7 | 2.7 | 5.8 | 8.2 |
Return on Revenue (ROR) in % | 7.5 | 6.8 | 7.7 | 6.1 | 1.6 | 4 | 5.2 |
Source : AM Best
Results of the four major European reinsurers
- Return On Equity (ROE): In terms of ROE, the combined average for the last five years with reference to the four major European reinsurers, Munich Re, Swiss Re, Hannover Re and Scor (8.2%) is higher than that of the whole market.
- Non-life net written premiums: The combined average premium of the top four European reinsurers over the past five years amounts to 61.8 billion USD, down over the comparison period, going from 66.1 billion USD in 2013 down to 63.4 billion USD in 2018. This indicator has been on the rise at the global level. The global reinsurance premium has risen from 144.2 billion USD in 2013 to 156.6 billion USD in 2018.
- Net result: This indicator is declining considerably for the four major reinsurers, going from 11.1 billion USD in 2013 to 4.6 billion USD in 2018, i.e. around 2.5 times less in five years. At the level of the overall market, the 2018 net result amounted to 2 billion USD, 12 times lower than those reaped in 2013 and set at 24.7 billion USD. It is noteworthy that for 2017 and 2018, the net income of the four majors was significantly higher than that generated by the overall market.
- Loss ratio and combined ratio: The average loss ratio of the four major European reinsurers is 2.3 points higher than that of the market (65.8% versus 63.5%).
The combined ratio of the two sets is more or less the same. 97.8% for majors and 97.6% for the market. In fact, the portfolio of large reinsurers is more distressed but better managed than that of the entire market.
Main indicators of the American and Bermudan markets: 2013-2018
In billions USD
| Indicator | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 5-year average |
|---|---|---|---|---|---|---|---|
Non life net written premiums | 44.8 | 47.8 | 47 | 50.4 | 54.4 | 62.7 | 52.5 |
Net earned premiums | 43.6 | 46.2 | 46.7 | 49.1 | 53 | 60.7 | 51.2 |
Net investment income | 4.7 | 5 | 4.2 | 4.6 | 5.2 | 4.8 | 4.8 |
Total revenues | 50.4 | 54.4 | 52.2 | 55.8 | 62.3 | 68.9 | 58.7 |
Net result | 8.4 | 8.7 | 5.7 | 5.5 | -0.4 | -1.4 | 3.6 |
Shareholder's equity | 74 | 80.8 | 78.5 | 81.5 | 81.7 | 89.1 | 82.3 |
Loss ratio | 55.3 | 53.8 | 55.7 | 59 | 77.5 | 70.8 | 63.4 |
Management expenses ratio | 31.3 | 33.6 | 33.3 | 33.5 | 31.7 | 33 | 33 |
Combined ratio % | 86.6 | 87.4 | 88.9 | 92.5 | 109.2 | 103.8 | 96.4 |
Return on Equity (ROE ) in % | 11.4 | 10.9 | 7.5 | 6.8 | -0.5 | -1.5 | 4.7 |
Return on Revenue (ROR) in % | 16.6 | 16 | 11 | 9.8 | -0.6 | -2 | 6.8 |
Source : AM Best
Results of American and Bermudan reinsurers
American and Bermudan reinsurers have an average ROE of 4.7% over five years, slightly more than Lloyd's but less than the top four European reinsurers. The average combined ratio stands at 96.4% compared to 97.6% for the overall market, 97.8% for the four major reinsurers and 98.9% for Lloyd's.
Eventually, American and Bermudian reinsurers posted strong growth in shareholder's equity (+15 billion USD) while Lloyd's’ remained stable. As for the four main reinsurers, it went down at (-11 billion USD).
