Europe’s big four reinsurers increase book by 10% at January renewals

The big four European reinsurance groups rode strong demand and higher pricing in the January 2022 renewals to 10% book growth to €35.3 billion, Litmus Analysis said of a review of renewals reporting from Hannover Re, Swiss Re, Munich Re and SCOR.

"Results were more consistent than in previous years, with each company reporting higher premium volume at renewal," authors wrote. Growth ranged from Swiss Re’s 6% to 14% for Munich Re.

"Strong demand from cedants and higher pricing generated 10% volume growth in the combined portfolio at renewal, compared with 5% achieved last year."

Of the €31.9 billion of treaty reinsurance premiums up for renewal in the group, some €29.1 billion was renewed and the remainder trimmed or dropped, a 9% cut.

That shortfall was made up for in full by the increase in rates and shares at renewal. In aggregate, the weighted average price increase was 2.7%; risk-adjusted pricing rose in a range from 0.7% for Munich Re to 4.9% for SCOR.

The season's gains were capped off by another 10% in new business, authors said of the path to the 10% total increase.

"New business contributed an additional 10%, benefiting from growth across virtually all core business lines," authors wrote.