This report summarises key themes emerging from global (re)insurers’ results for full-year 2021 and has been prepared by Gallagher Re’s Strategic and Financial Analytics teams.
Key Findings from this report:
- Robust premium growth continued with an average increase of 8% for the full-year and 11% for Q4. As seen earlier in the year, growth was fuelled by both the improving economic environment and favourable pricing for commercial lines in particular.
- Combined ratios were stronger in 2021, improving from an average 98% at FY 20 to 95%, driven by better attritional loss ratios and natural catastrophes having less impact than last year’s COVID losses.
- Capital positions in Europe strengthened further in 2021, with Solvency II capital ratios expanding from 209% to 226%.
- While the tracked group saw small but persistently positive earnings per share (EPS) estimate revisions following previous quarterly results last year, EPS estimates for 2022 were kept broadly unchanged following Q4 results.
- Inflation remained one of the most discussed themes on analyst conference calls. While price increases to date have outstripped claim trends, higher material and repair costs are impacting short-tail lines and a few companies have cited inflation when strengthening reserves for longer-tail lines.
