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<\/p>\nEurope\u2019s four largest reinsurers \u2013 Swiss Re, Munich Re, Hannover Re and SCOR \u2013 are maintaining their appetite for property-catastrophe risks as well as their ambitious profit targets for 2025 \u2013 despite signs of rate softening and hefty claims from January\u2019s California wildfires, according to AM Best.<\/p>\n
\u201cThis follows a period of right-sizing of [property-cat] portfolios, increases in attachment points, and a move away from aggregate covers and working layers,\u201d said AM Best in a report titled \u201cThe European \u2018Big Four\u2019 Reinsurers Maintain Their Risk Appetites<\/a>,\u201d published on Aug. 19.<\/p>\n \u201cAlthough prices have softened in the 2025 renewals, discipline on attachment points and terms seem to be holding for now,\u201d said the report, adding that there is no material sign, as yet, that this discipline is weakening<\/p>\n The main negative note for the \u201cBig Four\u201d reinsurers, highlighted by the report, was adverse development in U.S. casualty. However, these losses were absorbed by strong margins in property lines and improved investment yields.<\/p>\n The report noted that all four reinsurers continue to benefit from business written through the hard reinsurance market, with strong pricing, terms and conditions, which has allowed them \u201cto maintain robust performance metrics for their property\/casualty reinsurance segments.\u201d<\/p>\n At the same time, AM Best said, the \u201cBig Four\u201d composite reinsurers (which write both life and non-life reinsurance) have also been pursuing growth in insurance and reinsurance specialty segments such as cyber, marine, engineering, and other lines. \u201cThe growth in these lines is aimed at achieving increased levels of diversification and more stable earnings.\u201d<\/p>\n \u201cThe performance of life portfolios in 2024 was strong for three of the \u2018Big Four,\u2019 thanks to reduced impact from pandemic-related deaths, although excess mortality in the US, in particular, continued. The exception was SCOR<\/a>, which reported a large loss for its life segment in 2024,\u201d AM Best said. \u201cNotwithstanding SCOR\u2019s experience in 2024, the cohort\u2019s life books have generally had a stabilizing effect\u2026.\u201d<\/p>\n All four companies \u201cbenefit from their global reach, strong brands and diversified portfolios,\u201d the report affirmed.<\/p>\n Casualty Concerns<\/strong><\/p>\n On the main negative note, AM Best said, all four reinsurers have concerns about adverse development in U.S. casualty books, which is no longer limited to the particular underwriting years of 2014-2019.<\/p>\n \u201cSince 2023, all four have taken the opportunity, given the strong operating performance trends, to further strengthen non-life loss reserves. Overall, reserve strengthening charges have been comfortably absorbed by profit margins in other non-life lines of business,\u201d the report said.<\/p>\n IFRS-17 Comparisons<\/strong><\/p>\n Swiss Re transitioned to reporting under IFRS in 2024, which enhances comparability as all four companies are now reporting under the same accounting standard, AM Best said. \u201cComparison among groups reporting under IFRS 17 and with those reporting under US GAAP is made difficult by the differences in reporting standards. Discounted combined ratios under IFRS 17 are, for example, not directly comparable with the undiscounted combined ratios reported under US GAAP or IFRS 4.\u201d<\/p>\n Nevertheless, AM Best made some general comparative observations of the \u201cBig Four\u201d versus reinsurers reporting under US GAAP. \u201cThe \u2018Big Four\u2019 reinsurers have on average reported returns on equity (ROEs) for 2024 in line with the average for the U.S. & Bermuda market composite. However, Lloyd\u2019s ROE of 21.2% is materially higher than that of the European average.\u201d See related graphic below.<\/p>\n Source: AM Best<\/em><\/p>\n Related:<\/strong><\/p>\n Topics<\/span> Reinsurance<\/a> Property<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2025\/08\/european-big-four-reinsurers-summary-am-best-580x380.png\")
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