This report summarises key themes emerging from global (re)insurers’ financial results for the first quarter of 2022 and has been prepared by Gallagher Re’s Strategic and Financial Analytics teams.
Key Findings from this report:
- Premium growth remained positive with an average increase of 11% in Q1 supported by continued favourable pricing for commercial lines and reinsurance business.
- Underwriting results were strong with (re)insurers posting a 94% combined ratio (Q1 21: 96%), driven by favourable rates and a lower natural catastrophe loss impact compared to last year.
- Declining equity markets contributed to a drop in the average ROE to 9% (Q1 21: 14%).
- European solvency improved to 227% (Q1 21: 220%), supported by rising risk-free interest rates and retained profits.
- Despite the solid operating results noted above, reported shareholders’ equity across the group saw significant declines driven by the impact of higher interest rates causing a fall in the value of bond portfolios and equity holdings.
- Consensus 2023 earnings per share (EPS) estimates increased by 1.1% following Q1 results.
