Below you can find the executive summary of the report. The in-depth analysis of the presented figures can be found here - 1H2019 Aon's Reinsurance Aggregate report.
- The ARA posted strong earnings for the first half of 2019, driven by premium growth, benign major loss experience and capital market conditions that were conducive to investment returns.
- Total equity rose by USD 17 billion (+9%) to USD 201 billion at June 30, 2019, net of a capital return to investors of USD 7.0 billion.
- Total gross premiums written rose by 5% to USD 147 billion. Property and casualty (P&C) premiums climbed by USD 8 billion (+8%) to USD 108 billion, while other premiums were flat at USD 39 billion.
- The P&C reinsurance cession ratio was stable at an elevated level of 18.5%, partly reflecting the increasing amounts of peak risk now being transferred to the capital markets.
- P&C net premiums written rose by 9% to USD 89 billion, while net premiums earned rose by 5% to USD 79 billion.
- The accident year combined ratio was unchanged at 95.7%. The calendar year combined ratio deteriorated by 2.0pp to 96.2%, driven almost entirely driven by additions to reserves for prior year catastrophe losses (notably Typhoon Jebi).
- P&C underwriting profit fell by a third to USD 3.0 billion.
- Ordinary investment income rose by 7% to USD 11.7 billion, influenced by the impact of interest rate rises in the US and UK markets during 2018.
- Capital gains increased substantially to USD 7.1 billion, reflecting unrealized gains on bond and equity portfolios.
- Pre-tax profit stood at USD 15.7 billion, an increase of 42% relative to the first half of 2018. Net income rose by USD 3.9 billion (+44%) to USD 13.0 billion, representing a relatively strong annualized return on equity of 13.7%. This result was significantly ahead of the cost of equity.
You can read the full 1H2019 Aon's Reinsurance Aggregate report here.