The analysis shows that global property and casualty insurers are entering a next phase of the market cycle from a position of strength and have an opportunity to convert recent profitability gains into long-term competitive advantage. The analysis marks the start of Aon's Reinsurance Renewal Season, which helps insurers turn capital into growth.
Aon’s third annual analysis of 120 global property and casualty insurers found that return on average equity (RoAE) reached 16.8% in 2025 – the highest level observed since Aon began tracking the cohort in 2009. The result marked the fifth consecutive year of RoAE improvement since the 2020 downturn, and was supported by stronger underwriting income, favourable market conditions and a relatively benign catastrophe year.
The findings also show that market conditions are becoming more varied: the proportion of carriers increasing their RoAE year-on-year declined from 74% to 60%, while premium growth slowed for a fourth consecutive year to 5.2%, below the decade average and less than half the level recorded in 2021. The combined operating ratio improved to 91.1% – the lowest level of the decade – although performance dispersion widened across the sector.
Aon’s analysis highlights five key areas for insurers to avoid as they seeking to sustain profitable growth: Don't confuse strong returns with sustainable growth; don't defer difficult choices on where to grow; don't miss the opportunity to make capital a strategic asset; don't delay investments in people and technology; and don’t let AI become someone else’s advantage.
The report also points to an increasing differentiation across the market. Property casualty and reinsurance markets are beginning to follow different trajectories, while globally diversified and specialist carriers continue to show stronger relative performance. As a result, broad market participation is likely to be less effective than targeted decisions on portfolio mix, capital allocation, risk appetite, operating model investment and strategic acquisitions.
“The hard market restored profitability for many insurers, but long-term performance will increasingly depend on differentiation”, said Paul Campbell, Global Growth Officer, Strategy and Technology Group, Aon. “As growth becomes harder to sustain, the gap between growth and profitability continues to widen, creating new strategic choices for insurers. Insurers best positioned to outperform will be those that use today’s earnings strength to make better decisions on where to grow, how to deploy capital and which capabilities to build for the next phase of the cycle”, Paul Campbell added.
The report can be found here.
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