Major European Reinsurers Saw Earnings Decline through 3rd Quarter

The earnings of four major European reinsurers fell through the first three quarters of 2022 compared to the same period last year due to higher catastrophe losses, weaker investment returns, and reserve strengthening, according to Fitch Ratings.

On average, the four reinsurers—Munich Reinsurance Company, Swiss Reinsurance Company, Hannover Rück SE, and SCOR SE—showed double-digit premium growth in property and casualty reinsurance as a result of rising prices, increased demand, and a growing risk appetite, Fitch said.

In its report, "European Reinsurance Dashboard 9M22 Results," the rating agency said that the reinsurers' growth ambitions were backed by strong capital adequacy in 2022 following a rise in interest rates.

Fitch said that it has maintained its "neutral" fundamental sector outlook for global reinsurance, reflecting an expectation that the sector's underlying financial performance will be broadly stable in 2023, with rising prices and higher reinvestment yields offsetting increasing claims inflation and lower asset values.