Property and casualty (P&C) insurance premium growth is expected to soften next year and in 2025, but the sector’s profitability is poised to improve on stronger investment results and a better underwriting performance, according to Swiss Re’s latest sigma report.
Total insurance premium growth is forecast at 2.2% annually on average for the next two years, which is higher than the average of the past five years of 1.6%.
Within P&C specifically, Swiss Re notes that a significant repricing of insurance risk this year will result in 3.4% global premium growth in 2023, although this will soften to 2.6% growth in 2024 and 2025.
However, with the impact of economic inflation on claims projected to ease over the next two years, Swiss Re’s analysis finds that non-life insurance profitability will improve to around 10% ROE in both 2024 and 2025, which is above the 6.8% 10-year…
