Ahead of this week’s Rendez-Vous de Septembre in Monte Carlo, ICMIF Supporting Member Gallagher Re released its Reinsurance Market Report for the first half of 2024 (H1 2024).
The report delivers a comprehensive analysis of the capital and profitability of the global reinsurance industry, based on the Gallagher Reinsurance Index group of companies.
Key findings from the H1 2024 Reinsurance Market Report include:
- Global reinsurance dedicated capital reached USD 766 billion at half-year 2024, marking a 5.4% increase from the restated full-year 2023 figure. This growth was fueled by contributions from both the INDEX companies and non-life alternative capital.
- The reported combined ratio improved to 84.5% (2023 HY: 87.0%), with the underlying combined ratio also enhancing to 93.6% (2023 HY: 96.1%). This reflects ongoing improvements in underwriting performance.
- The reported return on equity (ROE) remained robust at 19.6% (2023 HY: 19.2%). Meanwhile, the underlying ROE increased to 15.5% (2023 HY: 13.6%), supported by improved underlying underwriting margins and higher running investment income.
- Reinsurers’ ROEs, whether reported or underlying, continue to surpass the industry’s cost of capital comfortably. This strong profitability has allowed the industry to not only recover from weaker profit years (2017-2020) but also to earn an additional margin.
- Overall, the reinsurance industry is well-positioned to handle potential future volatility, supported by its solid capital base and improved profitability metrics.
The report highlighted the resilience and positive momentum within the reinsurance sector, setting a strong foundation for the discussions at the Monte Carlo meetings.
