Global: Improved results for major European reinsurers in 1H
Source: Middle East Insurance Review | Sep 2021
The four major European reinsurance companies fared well in the first half of the year and remain well-equipped to cope with potentially high catastrophe claims in the second half, according to a Fitch Ratings report.
There was a very strong improvement in profitability y-o-y in 1H 2021 for Munich Re, Swiss Re, SCOR SE and Hannover Re, following significant price increases in property and casualty reinsurance and high demand for reinsurance protection. Premiums grew substantially, underwriting margins increased and capital adequacy improved, remaining very strong. Excess mortality losses related to the pandemic and falling reinvestment yields were the two most significant challenges to reinsurers.
However, prices increased less in June and July 2021 renewals than in the earlier January and April renewals, the report said. “Price increases were constrained by sufficient reinsurance capacity and a strong level of profitability for the reinsurance sector as a whole.”
The report said that the reinsurers are well-equipped to cope with a potentially high level of Nat CAT claims in 2H 2021 because their earnings and capital were very strong in 1H. M