Fitch Ratings’ latest analysis of a leading global reinsurer peer group, including Hannover Re, Lloyd’s, Munich Re, PartnerRe, SCOR, and Swiss Re, found that their reserving remains prudent, offering scope to manage and smooth earnings across the medium term.
“Average reported return on equity was very strong, at 14% in 2024, down from the 2023 cycle peak of 20%,” Fitch said.
The agency noted that P&C reinsurance benefited from the continuation of favourable terms and conditions at renewals, as well as lower-than-budgeted large losses in 2024, while life and health business performance was also strong.
Although Q1 2025 results were weaker than the same period in 2024, Fitch reported that earnings remained solid overall, as healthy underlying performance across most business lines helped to offset losses from the Los Angeles wildfires.
At the same time, strong operating capital generation has supported both business growth and shareholder returns. Fitch considers all peers except PartnerRe to be in the top tier of global reinsurers by company profile and among the largest by revenue.
As the reinsurance market softens from the highs of 2023, the rating agency’s findings come amid broader discussion about how sustainable reinsurer profitability will be heading into 2026 and beyond.
Further pricing pressure is expected at the upcoming January renewals, but recent analysis by J.P. Morgan suggests that Europe’s major reinsurers have historically performed better than expected during softer market conditions.
If the final quarter of 2025 remains as benign as the third in terms of catastrophe losses, analysts anticipate that property and property catastrophe reinsurance pricing will ease at the 1 January renewals.
However, coming off such a high base, several industry CEOs have emphasised that the market remains healthy, with adequate rates in many areas.
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