The report provides in-depth analysis of the size and performance of the reinsurance industry, based on the Gallagher Reinsurance Index group of companies.
The key findings of the report are:
- 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.
Last month, Gallagher Re published its Global InsurTech Report for Q2 2022. The report follows on this year’s theme of ‘Geographic Trends and Regional Idiosyncrasies’, with a specific look at the EMEA region through an InsurTech lens. In addition to profiling various InsurTech businesses, clients and individuals, this report provides the readership with the most current InsurTech investment data and view on the general market.
As a valued Supporting Member of ICMIF, Gallagher Re will be present at the forthcoming ICMIF Centenary Conference in Rome (Italy) from 25-28 October 2022. James Vickers, Chairman International, Reinsurance will take part in a high-level panel discussion of mutual/cooperative industry leaders and external stakeholders who will discuss some of the key issues impacting ICMIF member organisations around the world. They will discuss the leadership role that mutual/cooperative insurers, as purpose-led organisations, can play in solving some of these global challenges. Gallagher Re is also a Gold sponsor of the Centenary Conference.