Fitch Ratings' latest report reveals strong underwriting profits in the first half of 2024, with an aggregate reinsurance ratio of 84.2 per cent. This comes from the 19 non-life reinsurers that Fitch monitors, and suggests that underwriting results should remain favourable into 2025 as pricing is generally adequate. The report further unveils that non-life reinsurance net premiums increased by six per cent in H1, with premium growth expected to continue, albeit at a reduced rate as a result of increased market competition. This is similarly reflected among shareholders, where underwriting and investment gains grew shareholders’ equity by six per cent from the end of 2023. On the other hand, Fitch states that life and health reinsurers profitability varied. Despite strong revenue growth, results differed based on mortality and morbidity experience, especially with US mortality currently above pre-pandemic levels. Lastly, catastrophe bonds have performed better than other ILS during recent periods of high catastrophe losses. According to Fitch, strong supply growth will continue into 2025, barring any substantial ILS catastrophe losses in H2.
