Press Release - SEPTEMBER 03, 2019
Best’s Market Segment Report: Swiss Re Takes Top Spot in AM Best’s Top 50 Ranking of Global Reinsurers
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 03, 2019
“Expect Swiss Re and Munich Re to continue to compete for first place for the foreseeable future,” said Filippo Novella, financial analyst. “They are collectively the largest reinsurance providers of capacity in the market, and make up approximately 30% of total premium among the top 50 groups.”
After moving up in last year’s ranking, bolstered by a reinsurance agreement of almost $10 billion between National Indemnity Company and American International Group, Inc., Berkshire Hathaway Inc. fell back two spots to No. 5 given the one-off nature of the deal. Hannover Rück SE and SCOR SE took the three and four spots, respectively. Although Hannover Rück and SCOR reported modest growth in 2018, the latter experienced a mild top-line decline driven by the weakening of the euro against the U.S. dollar.
Overall, the Top 10 reinsurance groups make up 68% of the total gross premium written in the Top 50 ranking, which reinforces AM Best’s sentiment that the industry’s largest reinsurers continue to house disproportionately sizable amounts of risk, despite cedants’ efforts to diversify their reinsurance panels and spread out their counterparty risk.
The Top 50 reinsurance groups recorded an average combined ratio in 2018 of 100.9%, an 8.2-percentage point improvement from the previous year, mainly a result of lower catastrophe losses. Among the big four European reinsurers, Swiss Re Ltd.’s combined ratio of 106.6% was the highest for the year.
Other highlights from this year’s Top 50 ranking include:
The global reinsurance report also explores the state of the collateralized reinsurance market, along with in-depth looks at the Lloyd’s and life reinsurance markets, as well as geographic regions such as Latin America, MENA and Asia-Pacific.
To access a copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=289149 . A video interview with AM Best Financial Analyst Filippo Novella on the Top 50 Global Reinsurance group ranking is available.
AM Best will present a webinar, “State of the Global Reinsurance Market,” on Wednesday, Sept. 4, 2019, at 10 a.m. EDT, on reinsurance industry trends. To register for the complementary webinar, go to www.ambest.com/webinars/reinsurance19 .
AM Best also will host its annual Reinsurance Market Briefing at the 2019 Rendez-Vous de Septembre (Rendez-Vous) on Sunday, Sept. 8, 2019, at the Hermitage Hotel in Monte Carlo, Monaco. The briefing will start at 10:15 a.m. and conclude at 11:45 a.m. (CEST). To register, please visit www.ambest.com/events/rmbseptembre2019 . AM Best will hold a second Reinsurance Market Briefing in Zurich on Wednesday, Sept. 18, 2019, at the FIFA World Football Museum. More information and registration can be found at www.ambest.com/events/rmbzurich2019 .
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.