A significant portion of premiums written by the top five insurers in Ireland is being ceded to overseas parent companies through reinsurance agreements, obscuring the true financial performance of these firms’ Irish operations.
Annual filings reviewed by The Irish Times reveal that 40% of the combined €3.42 billion in premiums generated by the five largest players in the Irish market were transferred via reinsurance contracts. Most of these deals were with parent firms based outside of Ireland, leading to growing concerns over transparency in profitability reporting.
Among the insurers, Aviva Insurance Ireland stands out for its detailed disclosures. The company, which wrote €668 million in premiums last year—though an estimated €84 million relates to foreign business written via a UK branch—reported an underwriting profit of €15 million. However, the insurer cedes 70% of its general and health insurance risk to its UK-based parent, Aviva Insurance Limited, along with 85% to 100% of other business lines. The result: €70 million in net underwriting profits originating in Ireland ended up in the UK parent’s books.
Other insurers provided less detail. RSA Insurance Ireland, which wrote €399.9 million in gross premiums in 2024, ceded €306.8 million, primarily to its parent company. It did not disclose the profit impact of these transfers, limiting visibility into the profitability of its Irish unit.
Allianz Ireland maintains a 50% quota share reinsurance deal with Allianz Re Dublin, placing it among the higher levels of internal reinsurance among top players. By contrast, AXA Ireland, the largest insurer in the country, and FBD Holdings, Ireland’s only major indigenous insurer, reinsured just 2.6% and 7.6% of their premiums, respectively. Notably, FBD deals exclusively with third-party reinsurers, while AXA reported no reinsurance arrangements with its French parent.
While reinsurance is a common industry practice that provides financial stability and risk mitigation—especially during adverse conditions—analysts say these arrangements make it challenging for regulators, investors, and policymakers to assess how profitable insurers truly are in the local market.
The opacity is compounded by how reinsurance commissions and related income are recorded in regulatory filings such as Solvency and Financial Condition Reports (SCFRs), which are designed to improve transparency and oversight of insurers across the European Union.
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