The report summarises key themes emerging from global (re)insurers’ financial results for year-end 2022 and has been prepared by Gallagher Re’s Strategic and Financial Advisory team.
Key themes from Q4 and FY 2022 global (re)insurance results:
- Year-on-year premium growth averaged 12.1% for FY 2022, supported by improved pricing for commercial lines and reinsurance business.
- The average combined ratio deteriorated marginally to 95.7% (FY 2021: 94.7%), mainly due to an inflation-driven increase in the attritional loss ratio.
- Investment losses weighed on the average full-year ROE, which dropped to 10% (FY 2021: 12.6%).
- Shareholders' equity decreased by an average of 27% in FY 2022, driven by unrealised losses on investments and to a lesser extent capital return (both dividends and buybacks).
- Despite declining shareholders' equity, European solvency remained robust at 235% (FY 2021: 225%), supported by higher risk-free interest rates and retained profits.
- The total average consensus 2023 earnings per share (EPS) estimate was virtually unchanged following FY 2022 results.