The decline in profits for four major European reinsurers is down to varying factors, says Fitch Ratings.
The agency said that the Q! 2022 results for Munich re, Swiss Re, Hannover Re, and SCOR saw an average return on equity to 2.4% in 1Q22 from 7.4% a year ago.
The firm also named rising interest rates in Europe and the US that helped push solvency ratios higher in 1Q22, more than offsetting the strain on capital from new business growth. It also said elevated natural catastrophe claims, a first round of booked reserves for the Russia–Ukraine war, high Covid-19 mortality claims, and valuation losses for credit and equity investments were contributing factors.