European Insurers – Earnings Down But Regulatory Solvency Ratios Remain Strong
AM Best’s annual ranking of the largest European insurers shows that while the Top 10 remained unchanged from the previous year, nearly every company changed position further down the ranking. Also notable was the appearance of three newcomers, two of which are domiciled in the Netherlands.
AM Best’s new Market Segment Report, “European Insurers – Earnings Down But Regulatory Solvency Ratios Remain Strong” notes that COVID-19-related losses had a negative impact on earnings, with overall profit after tax significantly lower. However, insurers have continued to benefit from strong Solvency Capital Requirement ratios, with more than half above 200%.
Principal Takeaways:
Total gross written premium (GWP) reported by Europe’s 30 largest insurers was 0.7% lower in 2020.
AM Best observed a greater degree of change in the rankings than is typical. This included three newcomers.
COVID-19-related losses had a negative impact on the earnings for a number of players, with overall profit after tax (PAT) significantly lower in 2020.
The 30 largest European non-life insurers continued to benefit from strong regulatory solvency ratios.
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