European reinsurers report strong first half 2023 results

Posted 25/08/2023 – Quick takes

The first half financial results for leading European reinsurers in 2023 strongly outperformed the 2022 first half results. Composite reinsurers including Swiss Re, Hannover Re and Munich Re have all benefitted from the tightening terms and conditions, an improving investment environment and increased rates in 2023. Recent reinsurance reports also highlight that there continues to be a lack of capacity within the market meaning that the hard market conditions are likely to extend into 2024.


Property catastrophe reinsurance losses have been historically high for a number of years as a result of severe windstorms such as Hurricanes Irma, Ian and Ida. Given these losses, reinsurers have strategically been re-allocating their capacity, moving it away from catastrophe exposed business into casualty reinsurance in an attempt to better balance their portfolios. The gap in capacity within catastrophe reinsurance has had a significant impact on rates within the class which were often up +50% at 1/1.


Alpha comment

The reinsurance market has continued to improve following some historically poor financial results. Reinsurance represents a large section of the Lloyd’s market (33% in 2022) and we have had many discussions with reinsurance underwriters that are enjoying some of the best conditions in their careers. Whilst it is early in the windstorm season for 2023 the signs suggest that the catastrophe reinsurance market is in a better position than it has been for a number of years to ‘weather’ any large event.

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