European insurers’ FY 2024 results review

European insurers reported annual results that exceeded expectations in 2024 , bolstered by a resilient profitability in the P&C segment and a strong recovery in the life insurance segment. Lower than expected losses from natural catastrophes ( NatCat ) contributed to improved underwriting results. Combined ratios slightly decreased for most of insurers as the impact of inflation on claims costs has diminished and NatCat losses were, on average, lower than the previous year. Despite a significant improvement in net inflows, AXA and CNP Assurances still reported negative figures , primarily due to negative net inflows from capital guarantee products. AXA recorded negative net inflows of €0.8bn in unit-linked products while CA Assurances managed to report positive net inflows on traditional products of € 2,2 bn in 2024 , compared to -€2.9bn in 2023. After a sharp spike in 2023, the reinvestment yields of European insurers experienced a slight decline in 2024 while the average yield on assets continues to improve at a slow pace. The sensitivity of solvency ratios to both an increase and a decrease in interest rates significantly declined for most of European insurers. Credit Agricole Assurances appears to be the most sensitive to movements in interest rates. Additionally, insurers’ sensitivity to a widening of government spreads has increased in 2024 compared to the previous years .