{"id":595,"date":"2025-06-05T15:00:44","date_gmt":"2025-06-05T15:00:44","guid":{"rendered":"http:\/\/www.championbusinesswithjorge.com\/?p=595"},"modified":"2025-06-05T16:00:42","modified_gmt":"2025-06-05T16:00:42","slug":"sp-highlights-strong-capitalisation-and-competitive-strength-of-top-emea-insurers","status":"publish","type":"post","link":"http:\/\/www.championbusinesswithjorge.com\/index.php\/2025\/06\/05\/sp-highlights-strong-capitalisation-and-competitive-strength-of-top-emea-insurers\/","title":{"rendered":"S&P highlights strong capitalisation and competitive strength of top EMEA insurers"},"content":{"rendered":"

According to S&P Global Ratings, insurers based in Europe, the Middle East, and Africa (EMEA) maintain strong capital foundations and capital buffers that enable them to endure external shocks effectively.<\/p>\n

\"s&p-logo-new\"S&P\u2019s criteria show that the aggregate capital adequacy of these insurers consistently surpasses a 99.99% confidence level, reflecting a highly secure financial footing.<\/p>\n

This strong capitalisation is a key contributor to their generally stable outlooks, with average ratings concentrated in the ‘A’ category and a larger proportion of positive outlooks than negative ones.<\/p>\n

S&P Global Ratings highlights that insurers rated in the ‘AA’ category within the EMEA region all possess at least very strong competitive position assessments.<\/p>\n

This rating group is characterised by steady operating performance, supported by leading market positions and the ability to set favourable pricing.<\/p>\n

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The ratings agency emphasises the importance of earnings diversification, noting that insurers with less reliance on a single market or business line tend to have a more resilient business model.<\/p>\n

In 2024, primary insurers rated ‘AA’ and ‘AA-‘ reported robust aggregate earnings, with an average return on equity (ROE) of 13.4% and a combined ratio of 92%, underscoring their operational strength.<\/p>\n

S&P Global Ratings evaluates an insurer\u2019s financial strength by examining several factors, including competitive position, capital and earnings, risk exposure, and funding structure.<\/p>\n

In the EMEA region, most insurers enjoy high credit quality, with 63% of all financial strength ratings falling within the ‘A’ category and 9% in the ‘AA’ category. Those rated highest demonstrate very strong underwriting capabilities, market leadership, and pricing power, along with diversified sources of income that reduce vulnerability.<\/p>\n

The rating agency\u2019s recent analysis focused on a select group of primary insurers rated ‘AA’: Allianz SE, Aviva PLC, AXA, Cov\u00e9a Cooperations, Legal & General Group PLC, Sampo PLC, Talanx AG, and Zurich Insurance Co. Ltd.<\/p>\n

These companies share key traits such as very strong competitive positions and business risk profiles. S&P Global Ratings notes that while individual strengths and weaknesses vary, the group consistently delivers robust financial results.<\/p>\n

“EMEA-based insurers that we rate in the ‘AA’ category all have competitive position assessments of at least very strong. This reflects their consistently robust operating performance, supported by market-leading positions and pricing power,” S&P Global Ratings Credit Analyst Johannes Bender added.<\/p>\n

Profitability is viewed by S&P as a natural outcome of a strong competitive position. The agency expects insurers with better competitive standing to consistently deliver higher and more stable profitability metrics over time.<\/p>\n

The \u2018AA\u2019 rated insurers recorded an average ROE of 13.4% and a combined ratio of 92% in 2024, with five-year averages of 11.2% and 94%, respectively, supporting their steady performance. S&P also acknowledges the positive impact of IFRS 17 accounting standards, which tend to lower the present value of future claims and benefit combined ratios.<\/p>\n

Examining individual companies, S&P Global Ratings highlights Allianz SE\u2019s broad international reach, market leadership in key European countries, and gradual expansion in Asia-Pacific as key drivers of its AA rating with a stable outlook.<\/p>\n

Allianz reported a 7% increase in insurance revenue in 2024 and an ROE of 18.2%, reflecting its solid underwriting discipline and diversified earnings from asset management operations like PIMCO.<\/p>\n

Aviva PLC, rated AA- with a stable outlook, benefits from strong brand recognition and leadership in the UK, Ireland, and Canada. Its diversified product offering spans general, life, and health insurance, supported by a growing asset management business. Despite a decline in IFRS 17 net income in 2024, Aviva\u2019s insurance revenue increased by 12%, underpinned by favorable premium rates and strategic acquisitions.<\/p>\n

AXA, with a positive outlook and an AA- rating, demonstrates profitability resilience due to extensive geographical and business diversification. S&P credits AXA\u2019s improved combined ratio in property\/casualty insurance and strong revenue growth, despite high shareholder remuneration. The agency notes that AXA\u2019s capital adequacy remains strong even considering France\u2019s sovereign credit rating pressures.<\/p>\n

Cov\u00e9a Cooperations, also rated AA- but with a negative outlook, benefits from a solid position in the French property\/casualty market and an expanded global footprint following its acquisition of PartnerRe. S&P highlights this acquisition as enhancing Cov\u00e9a\u2019s earnings stability by diversifying risks across regions and lines.<\/p>\n

Legal & General Group PLC maintains a stable outlook with an AA- rating, supported by its leadership in pensions, protection, and asset management within its core markets. Though less geographically diversified than some peers, L&G\u2019s consistent earnings demonstrate its competitive resilience.<\/p>\n

Sampo PLC\u2019s stable AA- rating reflects its dominant positions in Nordic property\/casualty insurance markets and expanding scale in Denmark through strategic acquisitions. S&P recognises Sampo\u2019s improved net income and underwriting performance, despite increased weather-related claims.<\/p>\n

Talanx AG, rated AA- with a stable outlook, has enhanced its diversification through geographic expansion and balanced portfolio management. The company\u2019s strong underwriting controls and disciplined pricing have supported improved combined ratios and rising net income.<\/p>\n

Zurich Insurance Co. Ltd., rated AA with a stable outlook, is praised for its balanced life and non-life insurance portfolio and steady fee income from subsidiaries. Zurich\u2019s global market leadership and revenue growth contribute to its robust operating performance.<\/p>\n

In summary, S&P Global Ratings identifies the combination of strong capitalisation, very strong competitive positions, diversified earnings, and disciplined underwriting as defining characteristics of the highest-rated EMEA insurers.<\/p>\n

These factors collectively underpin their stable outlooks and solid financial performance, positioning them to navigate future market challenges with confidence.<\/p>\n

The post S&P highlights strong capitalisation and competitive strength of top EMEA insurers<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to S&P Global Ratings, insurers based in Europe, the Middle East, and Africa (EMEA) maintain strong capital foundations and capital buffers that enable them to endure external shocks effectively. S&P\u2019s criteria show that the aggregate capital adequacy of these insurers consistently surpasses a 99.99% confidence level, reflecting a highly secure financial footing. This strong […]<\/p>\n","protected":false},"author":1,"featured_media":597,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/posts\/595"}],"collection":[{"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/comments?post=595"}],"version-history":[{"count":3,"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/posts\/595\/revisions"}],"predecessor-version":[{"id":599,"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/posts\/595\/revisions\/599"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/media\/597"}],"wp:attachment":[{"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/media?parent=595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/categories?post=595"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.championbusinesswithjorge.com\/index.php\/wp-json\/wp\/v2\/tags?post=595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}