bs-preloader__icon
ru kz en

The results of the world’s largest reinsurers as of 2017 are summed up

What was the reason for the sharp decline in profits by 5 times? The answer to this question was found by forinsurer.com.
The results of the world’s largest reinsurers as of 2017 are summed up

The large-scale hurricanes, earthquakes and floods that fell on the second half of 2017 caused economic losses of $330 billion, $144 billion of which were insured from damage.

As Forinsurer reported, global insured losses caused by natural forces in 2017 became a record loss amount for one year.

Insured losses from natural and manmade disasters around the world made the record amount, ever observed for an annual period. The total amount of insured losses was $144 billion, and the losses of the entire world economy were $337 billion (almost doubled the losses as of 2016 and the second highest record), and the amount of uncovered losses from catastrophes amounted to $193 billion globally.

As a result, the year of 2017 was the second most expensive year for the hurricane season in the North Atlantic since 2005.

Insured losses have been divided among hurricanes as follows: Harvey cost insurers $30 billion, Irma - $30 billion and Maria - $32 billion.

Fires caused the insurers the record losses of $14 billion worldwide in 2017, becoming the biggest loss of this kind ever recorded in one year.

Losses of reinsurers grow

Most global insurance and reinsurance groups, according to XPRIMM, showed results as of 2017 with a heavy increase in losses.

Munich Re, Swiss Re, Hannover Re, SCOR and Berkshire Hathaway also did their parts. Their consolidated returns showed a downward trend: from $9.53 billion in 2016 this figure fell to $1.82 billion in 2017, which resulted in a total profit loss by $11.35 billion in one year.

Swiss Re suffered a significant loss of $4.7 billion due to natural disasters in 2017. Payments Munich Re for the same events amounted to 3.7 billion euros, 2.7 billion euros of which brought by the hurricanes Harvey, Irma and Maria. The Berkshire Hathaway loss, related to last year's events, was estimated at $2.4 billion.

The main results of the 5 world’s largest reinsurers as of 2016-2017

The total volume of signed premiums of major reinsurers has also increased by 18.64%. With the exception of Swiss Re, with turnover decline by 2.37%, Munich Re, Hannover Re, SCOR and Berkshire Hathaway showed double-digit growth rates between 14 and 73.97%.

 

 

TOP-5 reinsurers by gross income

#

Reinsurer

Income 2017, mln $

Income 2016, mln $

Rate, %

1

Munich Re

37 821

33 154

14%

2

Swiss Re

34775

35 622

-2.37%

3

Berkshire Hathaway

24 212

13 917

73.97%

4

Hannover Re

21 313

17 232

23.68%

5

SCOR

17 718

14 569

21.6%

.

Total

135 839

114 494

18.64%

The total stock equity of 5 reinsurers grew by 17.9% to $438.6 billion.

ТОП-5 reinsurers on stock equity

#

Reinsurer

Equity 2017, mln $

Equity 2016, mln $

Rate, %

1

Berkshire Hathaway

351 954

285 428

23.3%

2

Swiss Re

34 294

35 716

-3.98%

3

Munich Re

33 782

33 493

0.86%

4

Hannover Re

11 126

10 264

8.39%

5

SCOR

7 458

7 055

5.7%

.

Total

438 614

371 956

17.9%

 TOP-5 reinsurers by net results

#

Re-insurer

2017, mln. $

2016, mln. $

Rate, %

1

Hannover Re

1 148

1 650

-30.42%

2

SCOR

343

640

-46.41%

3

Swiss Re

331

3 558

-90.6%

4

Munich Re

144

2 670

-94.6%

5

Berkshire Hathaway

-3 648

1 012

-460%

6

Total

-1 820

9 530

-119%

           

As for technical indicators, the combined ratio exceeded 100% for Munich Re (114%), Swiss Re (112%) and SCOR (104%). In Hannover Re, this indicator fell by 6.1 points, but still remained below 100% (at 99.8%).

TOP-5 reinsurers by combined ratio

#

Re-insurer

                  2017, %                             2016, %                  Rate

1

Hannover Re

99.8

93.7

+6.1 points

2

SCOR

103.7

93.1

+10.6 points­

3

Swiss Re

111.5

93.5

+18 points

4

Munich Re

114.1

95.8

+18.3 points­

5

Berkshire Hathaway

-

89.4%

-

 What brought the greatest losses to reinsurers and insurers?

The biggest losses were caused by hurricanes Harvey, Irma and Mary, that cost insurers $92 billion, which is equal to 0.5% of the US GDP, causing economic damage of $17 billion, the report said.

The main source of major insurance losses was the hurricane season in the North Atlantic. In particular, Hurricanes Harvey, Irma, Maria, which were assigned a 4+ intensity category, left devastation on the islands of the Caribbean, Puerto Rico, Texas and parts of the territory of western Florida.

Source: https://forinsurer.com/news/18/05/07/35953

Photos per websites: prostrahovanie24.ru, proins.ru, biznes-prost.ru

Share
read also
Asia Life joins International Group Freedom Holding Corp.
Asia Life joins International Group Freedom Holding Corp.

As of October 29, 2018, the life insurance company Asia Life JSC has been renamed Fre...

Investments of Life Insurers during the Market Decline
Investments of Life Insurers during the Market Decline

The Coronavirus, oil price collapse, falling Tenge and falling markets do not scare K...

AM Best Report: Improving the Operating Environment for Kazakhstani Insurers
AM Best Report: Improving the Operating Environment for Kazakhstani Insurers

The AM Best rating agency forecasts in the long term an operational environment impro...

The most interesting materials of the site you have in the mail! Subscribe to the newsletter.

ASK A QUESTION TO THE EXPERT
ASK A QUESTION TO THE EXPERT
Submit your application