The report provides in-depth analysis of the size and performance of the reinsurance industry, based on the Gallagher Reinsurance Index group of companies.
Key Findings from this report:
- Global reinsurance dedicated capital totalled USD 647 billion at half-year 2022, down 11% from the restated 2021 base, with the reduction primarily driven by investment losses.
- Gallagher Re’s in-depth analysis of a subset of 17 reinsurers shows the reported combined ratio improved to 93.0% (HY 21: 94.1%), the lowest we have seen since 2015.
- Despite this continued strong underwriting performance, the reported ROE reduced to 0.4% (HY 21: 13.9%), driven by an investment gains yield of -3.5% (HY 21: +1.7%) – itself driven by the sell-off in bond and equity markets in the first half of the year.
- The underlying ROE nevertheless improved, from 6.3% in HY 21 to 7.5%. This still stands below the industry’s cost of capital but is the best underlying ROE we have measured since 2014.