Largest European Reinsurers' Performance Improved through September

The four largest European reinsurers showed strong improvements during the first three quarters of 2021 compared to their performance during the same period last year, according to Fitch Ratings.

Sharply lower non-life claims related to the COVID-19 pandemic more than offset high and above-budget natural catastrophe losses for Munich Reinsurance Company, Swiss Reinsurance Company Ltd., Hannover Rueck SE, and SCOR SE, Fitch Ratings said.

On average, the four large European reinsurers posted double-digit premium growth in property and casualty reinsurance during the first 9 months of this year based on rising prices, greater demand, and an increased risk appetite, the rating agency said.

The reinsurers' growth ambitions have been supported thus far in 2021 by strong capital adequacy, which was partially achieved through the issuance of subordinated debt, Fitch said.

Fitch said the pandemic had a significant impact on the life and health reinsurance activities of the four reinsurers, noting that they had to set aside 7 percent of net earned premiums on average to cover excess mortality claims.

The rating agency reiterated its "improving" fundamental sector outlook for global reinsurance, reflecting its expectation that the sector's performance will continue to improve in 2022 due to rising reinsurance prices in a hardening market environment and increased economic activity.