Swiss Re has climbed above Munich Re to lead AM Best’s annual global reinsurer premium rankings following its adoption of IFRS 17 reporting standards, the rating agency said on Monday. The AM Best logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration

AM Best's annual World’s 50 Largest Reinsurers report said that Swiss Re's adoption of IFRS 17 had seen it move to the top of the ranking of IFRS 17 reporters, with Munich Re slipping to second place. Swiss Re reported $36.2 billion in reinsurance revenue at year‑end 2024, ahead of Munich Re’s $32.6 billion. Hannover Re was third in the ranking with $27.5 billion in reinsurance revenue. The figures cover both life and non‑life premiums, with AM Best having stopped breaking out non‑life premiums in its 2024 report.

"Swiss Re’s adoption of the accounting standard, after previously reporting under GAAP, moved the group from first among the non‑IFRS 17 reporters to first among IFRS 17 reporters," the report said. The rating agency attributed Munich Re’s decline partly to a weaker euro, though adjusted results showed underlying growth.

"The top five IFRS 17 players had solid performance in 2024, reporting a weighted average combined ratio of 84.9%," AM Best noted. "Surplus growth among the top five was 1.4%, with average growth of 2.9% among the top three players offset by an average decline of 3.8% from Scor and China Re."

Among non‑IFRS 17 reinsurers, Berkshire Hathaway ranked first with gross written premiums of $26.9 billion, ahead of Lloyd’s ($23.5 billion). Reinsurance Group of America, Everest Group and RenaissanceRe completed the top five. Everest climbed two spots to fourth, surpassing RenaissanceRe owing to a 12.9% jump in GWP. GWP across the top five non‑IFRS 17 firms increased by 3.5% to $90.7 billion. Lloyd’s, RGA and Everest recorded growth of 8.9%, offsetting a 2.9% dip for Berkshire Hathaway and RenRe. The top five averaged an 85.7% combined ratio.

From 2022 to 2024, the average combined ratio for non‑IFRS 17 companies improved from 100.9% to 89.1%, signalling stronger underwriting discipline. The industry benefited from higher interest rates, with net investment income boosting returns. Shareholders’ equity among non‑IFRS 17 reinsurers grew by 19.5% in 2023 and 12.9% in 2024, rising to a combined $1 trillion of equity.

Among the biggest climbers, Core Specialty Insurance Holdings jumped 10 places to 23rd following a 52.5% leap in GWP, the highest for any non‑IFRS 17 reinsurer. Chubb rose six spots to 24th, with a 36.1% increase in GWP, while Ascot Group climbed to 22nd place with a 28.3% increase in premiums. Qianhai Re and WR Berkley both slipped six spots, to 31st and 30th respectively, due to premium declines and currency effects.

AM Best said the market remains resilient despite another year of heavy catastrophe activity, which caused more than $140 billion in insured losses. "The overall market for reinsurers remained favourable in 2024," it noted, signalling strong capital growth and adequate pricing. AM Best expects volatility to persist and has warned that softening pockets, notably in Japan’s catastrophe reinsurance market, may pressure margins. "As global market dynamics change, we expect existing players to make strategic changes to find growth and profitability," the report said.

Swiss Re leads AM Best reinsurer premium ranking after IFRS 17 adoption

Swiss Re surpassed Munich Re to top AM Best’s annual global reinsurer premium rankings after adopting IFRS 17, reporting $36.2 billion in 2024 reinsurance revenue. The report highlights strong performance among IFRS 17 reporters, a shift in the reinsurance market, and continued resilience despite heavy catastrophe losses.