Global P&C Reinsurers: Solid Earnings in 2024, but There Are Potential Headwinds on the Horizon for 2025

In 2024, Global P&C reinsurers reported strong net earnings driven by solid investment income, and very good underwriting performance, despite elevated insured global natural catastrophe losses.

Key Highlights

-- Global reinsurers benefited from a relatively high-interest rate environment in 2024 as they reinvested their maturing investment in higher-yielding securities while maintaining a relatively conservative investment portfolio mix typically dominated by fixed income investments.

-- Our outlook for the global P&C reinsurance industry is revised to stable from positive due to increased global geopolitical uncertainty and other headwinds, including further market volatility caused by U.S. tariffs, and uncertainty about how central banks may respond with interest rate actions if inflation starts to rise again.

Victor Adesanya, Vice President, Global Insurance & Pension Ratings said, "Given their strong capital positions and in some cases pricing improvements for loss-impacted reinsurance treaties from the 2025 renewals, we expect the P&C reinsurance sector to be able to navigate the difficult operating environment even if market volatility is sustained."