This figure surpassed the previous high of 20.5% set in the first half of 2023 and marked a significant increase from 15.5% in the same period last year. The improvement was largely attributed to SCOR’s earnings recovery.
Underwriting results remained solid across most business lines, and investment returns were steady, supporting overall profitability. These outcomes were achieved despite an environment of rising insured natural catastrophe losses, volatile capital markets, and early signs of a shift in the reinsurance cycle.
All four reinsurers reported capital adequacy at the end of the first half of 2025 that was well above their target ranges.
The companies’ financial performance and capital buffers were highlighted as indicators of resilience and preparedness for potentially less favorable market conditions over the next one to two years.
Fitch currently rates these reinsurers between ‘AA’ and ‘A+’. Meeting full-year guidance, as confirmed during the first-half announcements, will depend on the firms’ ability to manage catastrophe losses and navigate slower revenue growth.
The four largest European reinsurers reported combined earnings of €11 billion for 2024, representing an 8% increase from the previous year. Munich Re and Hannover Re achieved net income increases of 23% and 28%, respectively, while SCOR’s profits declined sharply due to a €348 million loss in its life and health segment.
Property and casualty (P&C) reinsurance profitability remained robust. The average combined ratio for the group fell to a record low of 81.5% in the first half, improving by 1.3 percentage points from the prior year. This reflected strong underlying performance and a low natural catastrophe (nat cat) loss ratio.
Although wildfires in Los Angeles contributed to global nat cat losses, these losses stayed below budget for the half year. Most reinsurers used favorable underwriting results to further strengthen reserves.
Revenue growth slowed compared to the previous year, with reinsurers prioritizing diversification and profitability over expansion. Price and volume reductions at mid-year renewals contributed to this trend. The depreciation of the US dollar negatively affected most reinsurers, exposing varying sensitivities to foreign-exchange movements.
Life and health (L&H) reinsurance earnings were also strong, supported by steady releases from the contractual service margin (CSM) on in-force business. Performance within the peer group was more consistent, with positive experience variance and limited volatility.
Global property catastrophe insured losses reached at least $80 billion in the first half of 2025, exceeding the historical average for the period. The LA wildfires and severe convective storms in the US were primary contributors.
Despite the elevated catastrophe activity, nat cat losses for the four reinsurers remained below budget. The relatively mild loss experience in the second quarter helped offset the impact of the LA wildfires, which accounted for nearly 40% of the annual nat cat budget.
At the mid-year renewals, all four major European reinsurers expanded their property-casualty books, though the extent of growth and rate increases varied. Hannover Re achieved the highest overall growth in renewed premiums, while SCOR led in price increases.
The pace of premium rate increases slowed at mid-year compared to January, with some reinsurers emphasizing financial strength and long-term relationships in negotiations. These differences in renewal outcomes reflect the varied strategies and market positions among the leading reinsurers.
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