Sharply lower non-life claims related to the coronavirus pandemic more than offset high, and above-budget, natural catastrophe losses, Fitch Ratings says.
The pandemic had a strong impact on the life and health reinsurance activities of the major reinsurers, which had to put aside 7% of net earned premiums on average to cover excess mortality claims.
Paris:
International rating agency Fitch has said the 9M21 results of the four major European reinsurers – Munich Reinsurance Company (Insurer Financial Strength (IFS): AA/Stable), Swiss Reinsurance Company Ltd, Hannover Rueck SE and SCOR SE – revealed a strong improvement in earnings compared to the same period last year. .
Sharply lower non-life claims related to the coronavirus pandemic more than offset high, and above-budget, natural catastrophe losses, Fitch Ratings says.
On average, the big four reinsurers showed double-digit premium growth in property and casualty reinsurance in 9M21 on the back of rising prices, rising demand and an increased risk appetite.
The growth ambitions have been backed so far in 2021 by a very strong capital adequacy, which was partially achieved by the issuance of subordinated debt.
The pandemic had a strong impact on the life and health reinsurance activities of the major reinsurers, which had to put aside 7% of net earned premiums on average to cover excess mortality claims.
Fitch reiterates its ‘Improving’ fundamental sector outlook for global reinsurance to reflect Fitch’s expectation that the sector’s financial performance will continue to improve in 2022, driven by rising prices in a hardening market environment and a higher economic activity.