Profits reported by the non-life operations among Europe's leading insurers were down in the first half of 2011 compared to the same period last year, as the high frequency and severity of natural catastrophes, particularly in the first quarter, took their toll.
Not all insurers reported a fall in their bottom line, according to figures compiled by Commercial Risk Europe. However as a group, the total profit figure fell by 7.6 per cent down from a total of €4.47 billion in the first half of 2010 to a combined net profit of €4.13 billion for the first six months of 2011.
As a group, total property and casualty (p/c) gross written premiums climbed for the six insurers sampled, up 4 per cent to €66.5 billion. Shareholder equity for the group reduced by 3.3 per cent to €138.7 billion. Shareholder equity fell by 4.3 per cent at Allianz to €42.6 billion, by 6.6 per cent at AXA to €46.4 billion, and by 2.6 per cent at Zurich to €21.5 billion. The number was up 5 per cent at ACE to €16.6 billion, 3.8 per cent at RSA to €4.3 billion, and 0.1 per cent at XL to €7.3 billion.
Heavy natural catastrophe losses, particularly in the first quarter of 2011, were the main contributory factor for the three insurers that posted negative movement on their profits and combined ratios.
The impact of hurricane Irene and other events that may have occurred means that the half year results do not look that healthy on entering the reinsurance renewal round and do not auger well for renewals. This suggests a more relaxed time for insurance buyers in this second half of the year.
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© Commercial Risk Europe
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