A new peer group credit analysis by Fitch Ratings shows that 2024 marked the second consecutive year of “very strong” financial performance for major global reinsurers in the property and casualty (P&C) sector, driven by sustained underwriting profitability and solid investment income in a prolonged favorable market environment.
The analysis covers some of the industry’s largest reinsurers, including Hannover Re, Lloyd’s of London, Munich Re, PartnerRe, SCOR, and Swiss Re.
According to Fitch, the average reported return on equity (ROE) for the group was a robust 14% in 2024. While this reflects a decline from the 2023 cycle peak of 20%, the performance remains notably strong.
Favorable renewal terms and a lower incidence of large losses than expected contributed to the continued strength of the P&C reinsurance segment in 2024.
Life and health reinsurance also posted strong overall results, with the exception of SCOR, which was affected by adverse changes in its reserving assumptions.
Investment performance improved across all companies, supported by elevated bond yields for the second year in a row. While earnings in Q1 2025 were slightly weaker compared to Q1 2024, they remained strong, underpinned by resilient performance across most business lines. This strength helped mitigate the financial impact of the Los Angeles wildfires.
Fitch also reported that solvency coverage remained broadly stable for these reinsurers in 2024. Most maintained solvency well above target ranges, with Munich Re and Hannover Re holding the largest capital buffers.
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