Europe’s four largest reinsurers reported strong results in 2023 and the first half of 2024 for their non-life reinsurance segments, benefitting from continued strong pricing and terms, according to a new AM Best report.

The Best's Market Segment Report, “Global Reinsurance – The European Big Four,” is part of AM Best’s look at the global reinsurance industry ahead of the Rendez-Vous de Septembre in Monte Carlo. Additional reports, including AM Best’s ranking of top global reinsurance groups and in-depth looks at the insurance-linked securities, Lloyd’s, life/annuity, health and regional reinsurance markets, are available at Best’s Research.

This report notes that changes in the way three of the Big Four reinsurers report their earnings makes comparisons among these companies—as well as comparisons of metrics for years prior to 2022—difficult. Munich Re, Hannover Re and SCOR all reported under IFRS 17 for 2023, while Swiss Re reported under U.S. GAAP. Discounted combined ratios under IFRS 17 are, for example, not directly comparable with the undiscounted combined ratios reported under U.S. GAAP or IFRS 4.

In addition, comparisons between IFRS 17 reporters are also complicated by differences in disclosures, measurement models and other variability allowed by the standard. Nonetheless, with those caveats in mind, AM Best can make some general comparative observations.

The European players’ ROEs tend to be more stable over time. In addition—notwithstanding SCOR’s recent announcement regarding a reserve review for its life business—the European Big Four’s life books have generally had a stabilising effect, and the players are very diversified.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=346254.

Lastly, AM Best will host its annual reinsurance market briefing at Rendez-Vous de Septembre on Sept. 8, 2024, at 10:15 a.m. (CEST) in Monte Carlo. For more information, please visit http://www3.ambest.com/rd/rd.aspx?rd=RVDS2024.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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