LONDON (May 1, 2019) – Aon plc (NYSE:AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today launches the latest edition of its Aon’s Reinsurance Aggregate (ARA) report, which analyses the 2018 financial results of 23 major reinsurers*. These companies represent around half of the world’s non-life reinsurance premiums and a large majority of the life reinsurance premiums. Their aggregated results are therefore regarded as a reasonable proxy for the sector as a whole.
The firm's latest study found that total capital deployed by the ARA stood at USD233 billion at 31 December 2018, a reduction of USD13 billion, or 5%, relative to a year earlier. Operating performance improved in 2018, aided by a reduced, though still high, burden of natural catastrophe losses. However, the investment result was materially weaker than in 2017 and, as a result, earnings remained well below the cost of capital.
Further key findings include:
Mike Van Slooten, Head of Business Intelligence for Aon’s Reinsurance Solutions business, said: “The natural catastrophe losses absorbed by the private market in 2017 and 2018 are estimated at USD220 billion – an unprecedented total for any two-year period. The impact to the ARA exceeded USD32 billion and yet overall earnings have remained positive in both years. We believe this is testament to the resilience of the sector.”
Notes to Editors
* Alleghany, Arch, Argo, Aspen, AXIS, Beazley, Everest Re, Fairfax, Hannover Re, Hiscox, Lancashire, Mapfre, Markel, Munich Re, Partner Re, QBE, Qatar Insurance, RenRe, SCOR, Sirius, Swiss Re, Third Point Re and W.R. Berkley.
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