Reinsurance sector delivers robust total RoE in Q1’24: ACORD

The reinsurance sector exhibited strong overall performance in Q1, achieving an impressive +42% total return on equity, as highlighted in ACORD’s initial Global Insurance Stock Index Update for 2024.

ACORD, the standards-setting body for the global insurance industry, attributes this impressive performance to a combination of factors: “top-line growth driven by strong capacity and favourable renewal terms combined with resilient underwriting margins drive profit.”

Additionally, the property and casualty (P&C) sector experienced exceptionally high returns, surpassing other segments with a remarkable +46.8% total return on equity.

The P&C sector’s strong profitability was fueled by over 25 quarters of CLs price increases, substantial underwriting margins, and supportive investment gains.

The life and health sector witnessed a +21.3% total return. Despite positive investment gains, challenges such as single-digit premium growth, concerns regarding commercial real estate, and challenges in Asian markets tempered results.

Furthermore, multi-line insurance experienced above-average returns with a +26% increase.

Nevertheless, all sectors outperformed the FTSE All-World index, which concluded the first quarter with a 21% increase, driven by a strong global equity market. Reinsurance and P&C sectors notably doubled this performance, indicating strong and resilient growth trends.

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