Analysts at Fitch Ratings are forecast further improvements in underlying technical margins and pricing in non-life reinsurance for the largest European companies, following favourable trends in Q1.
All four major European reinsurers reported improved margins in non-life during Q1, Fitch notes, as they increased prices and negotiated better terms and conditions.
Reported combined ratios remained below 100% despite substantial natural catastrophe claims, such as from winter storm Uri in Texas.
This resulted in an improvement of the average return on equity to 7.4% in Q1 2021 from 5.6% in Q1 2020, while normalised combined ratios are improving towards 95%.
