Re/insurers book 96.9% 9M combined ratio as premiums surge

Global re/insurers reported strong underwriting performance in the first nine months of the year on the back of improved market conditions.

Companies tracked by Gallagher Re booked an average combined ratio of 96.9% for the nine-month period, a modest deterioration from the 95.5% reported in the same period a year earlier.

Scor, Swiss Re and MS&AD reported the highest combined ratios, stemming largely from natural catastrophe losses and reserve increases related to social and economic inflation.

Paris-based Scor booked a nine-month combined ratio of 119.5%, while MS&AD reported 106.2% and Swiss Re booked 106.1%, according to Gallagher Re’s analysis.

Re/insurers’ overall level of profitability was supported by continued double-digit premium growth, modestly lower natural catastrophe loss activity – despite the impact of Hurricane Ian – and a reduction in the expense ratio.

But these positive factors were offset by increases in the attritional loss ratio, partially due to a rise in personal lines loss trends, and prior-year reserve development, Gallagher Re said.

Some re/insurers also established reserves for claims exposure relating to the war in Ukraine.

Hurricane Ian had a significant impact on re/insurers’ underwriting performance in the third quarter of the year, with the average combined ratio increasing 3.3 points to 102.1% in the quarter.

Year-on-year premium growth averaged 13% in the nine-month period driven by improved pricing for commercial lines and reinsurance business.

Global reinsurers booked the strongest increase with premiums rising 18.2%, led by Hannover Re, Munich Re and Scor, driven by growth in traditional treaty and structured reinsurance business and FX tailwinds from the strong US dollar.