IFRS 17 Adoption Alters AM Best's Top Reinsurer Rankings

The adoption of International Financial Reporting Standards (IFRS) 17 has necessitated a significant change in AM Best's 2023 ranking of the world's leading reinsurance groups. The shift from a focus on premiums written and earned to insurance revenue, which reflects the amount earned for services rendered, has prompted a re-engineering of this closely followed industry ranking. 

In this year's report, reinsurers that follow IFRS 17 are ranked based on gross reinsurance revenue, while those not reporting under IFRS 17 are ranked by gross written reinsurance premium. Munich Reinsurance Co. leads the IFRS 17 group with $32.9 billion in reinsurance revenue, followed by Hannover Rück SE with $27.0 billion and SCOR SE with $17.6 billion. Swiss Re Ltd. tops the non-IFRS 17 group with $40.5 billion in gross premiums written, followed by Berkshire Hathaway Inc. with $27.5 billion and Lloyd's with $22.1 billion. 

"This year's list of the top reinsurers looks different than it has in prior years, as the analysis has evolved to provide the most relevant rankings possible," said Carlos Wong-Fupuy, senior director at AM Best. The report highlights the significant changes in the industry landscape as a result of the new accounting standards, marking one of the most notable shifts in the rankings in recent memory.

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