Global Reinsurance Highlights 2024
In Global Reinsurance Highlights 2024, S&P Global Ratings discusses reinsurers' renewed sense of optimism after they earned their cost of capital for the first time in four years in 2023, and how they are poised for success in 2024.
Global Reinsurers Must Maintain Discipline To Cement Strong Performance Amid Casualty Risks
Reinsurers Show Growing Appetite For Natural Catastrophe Risks
Reinsurers Dodge Severe Convective Storm Losses Amid Rising Threats
Funded Reinsurance Deserves The Heightened Regulatory Scrutiny
Assessing Europe's Global Reinsurers Under IFRS 17
S&P Global Ratings' Top 40 Global Reinsurers In 2024 And Reinsurers By Country
Global Reinsurance Interactive
The global reinsurance industry benefits from a renewed sense of optimism, after reinsurers earned their cost of capital for the first time in four years in 2023. In our Global Reinsurance Highlights 2024, we take a closer look at the effects of this success on reinsurers' activity in 2024 and other key industry trends. Additionally, we delve into the key issues that reinsurance management, investors, and other stakeholders are facing.
In our lead article "Global Reinsurers Must Maintain Discipline To Cement Strong Performance Amid Casualty Risks,” we outline the main tailwinds for the sector and why we have maintained our stable view of the industry. We also share our earnings forecast over 2024-2025 and discuss headwinds. These include U.S. casualty loss reserves, which remain susceptible to inflation risk, especially due to soft underwriting over 2014-2019. In addition, reinsurers' strategic positioning helped them mostly dodge last year's elevated natural catastrophe losses from secondary perils, though they remain exposed to potential outsize losses from primary perils.
In “Reinsurers Show Growing Appetite For Natural Catastrophe Risks,” we analyze how rising demand, improved pricing, and more favorable terms and conditions boosted reinsurers' appetite for property catastrophe risk. We expect better underwriting margins, stronger investment income, and robust capitalization will add to reinsurers' already strong buffers against exceptional shock.
In 2023 and the first half of 2024, insured losses from secondary perils, especially severe convective storms, surged to unprecedented levels. In “Reinsurers Dodge Severe Convective Storm Losses Amid Rising Threats,” we discuss how primary insurers bore the brunt of these losses, while reinsurers' strategic positioning largely shielded them. While the reasons behind the rising loss cost trends can be debated--from increasing exposure and inflation to the complex implications of climate change--the imperative to understand and manage natural catastrophe risk in all its forms remains unequivocal. Record surplus positions at defined benefit pension schemes have given many companies an opportunity to reduce their pension risk exposure.
In our credit FAQ “Funded Reinsurance Deserves The Heightened Regulatory Scrutiny,” we address frequently asked questions related to the U.K. bulk purchase annuities market and the use of funded reinsurance transactions.
Jan. 1, 2023, marked a new financial starting point for Europe-based reinsurers that made the switch to a new accounting standard. In “Assessing Europe's Global Reinsurers Under IFRS 17,” we discuss how the move to a principles-based standard that offers far more options could impede comparability among reported results under different accounting standards, and even among reinsurers that have made different choices under IFRS 17.
“S&P Global Ratings' Top 40 Global Reinsurers In 2024 And Reinsurers By Country” reveals that Munich Re Co. leads our ranking of the top 40 global reinsurers by net reinsurance premiums written, with Swiss Re and Hannover Re following suit. The ranking is part of a report that also includes an extensive list of 135 reinsurers in 30 countries and aims to provide market participants with an indication of the ongoing reinsurance capacity available in each market.
We hope you find the 2024 edition insightful and look forward to your feedback.
Johannes BenderFrankfurt+49-693-399-9196johannes.bender@spglobal.com
Taoufik GharibNew York+1-212-438-7253taoufik.gharib@spglobal.com
Saurabh KhasnisEnglewood+1-303-721-4554saurabh.khasnis@spglobal.com
Michael ZimmermanEnglewood+1-303-721-4575michael.zimmerman@spglobal.com
Charles-Marie DelpuechLondon+44-20-7176-7967charles-marie.delpuech@spglobal.com
Volker KudszusFrankfurt+49-693-399-9192volker.kudszus@spglobal.com
Ali KarakuyuLondon+44-20-7176-7301ali.karakuyu@spglobal.com
Simon AshworthLondon+44-20-7176-7243simon.ashworth@spglobal.com
Maren JosefsLondon+44-20-7176-7050maren.josefs@spglobal.com
Sachin BhojaniLondon+44-20-3367-0539sachin.bhojani@spglobal.com
Nadeem Shaik
Vikas Rathore
Tanveen Bamrah
Rahul Iyer
Anisha Tole
Tom Lowenstein
Savannah Vickers
Devon Reilly
Kathrin Schindler
Heather Bayly
