S&P Global Ratings, the financial research and credit ratings agency, said the world’s largest global multiline insurers continued to post strong financial performances in 2025, supported by disciplined underwriting, solid investment returns, and resilient capital positions.
In a new report, the company said the 15 global multiline insurers (GMIs) it rates recorded combined net earnings of $84 billion during the year, compared with $68 billion in 2024.
According to S&P, reported earnings rose by 23% year on year, although underlying growth was lower once currency movements and exceptional items were excluded. On a comparable basis, the company said earnings increased by 9%, which it described as being at the upper end of its expectations for the sector.
S&P stated that earnings were partly supported by the weaker US dollar and a number of one-off transactions. AXA reported gains of $2.5 billion following the sale of its asset management business to BNP Paribas, while Prudential PLC recorded gains of $1.4 billion through the sale of part of its holding in ICICI Prudential Asset Management Company Limited. By comparison, AIG’s disposal of Corebridge in 2024 resulted in a one-off loss of $3.6 billion.
The company defines GMIs as insurers with broad diversification across business lines or international markets. These include groups such as Allianz, AXA, Zurich, AIG, Chubb, Tokio Marine, QBE, Prudential Financial, MetLife, Sun Life, Manulife, AIA, Prudential PLC, Mapfre, and Talanx.
S&P said the sector continued to benefit from pricing discipline, selective underwriting, conservative investment strategies, and the use of reinsurance to manage risk exposure. The company added that diversified business models and strong brand positions remained key advantages for large international insurers.
The report also highlighted the growing contribution of asset management and fee-based businesses to earnings. S&P said Allianz generated roughly one-fifth of operating earnings from asset management activities, while Zurich derived more than a quarter of operating profit from Farmers’ insurance management services. Sun Life and Manulife also generated more than 25% of earnings from investment management operations.
S&P noted that insurers continued to improve operational efficiency through internal risk management practices, product development, and wider use of technology. The company noted that generative artificial intelligence is increasingly being applied across underwriting, claims handling, policy administration, and fraud detection processes.
The company said the sector’s financial strength was reflected in its ratings profile, with nearly half of the insurers rated at ‘AA’. Over the past year, S&P Global Ratings upgraded AXA, Prudential PLC, AIA, AIG, and QBE, while revising the outlooks on Tokio Marine and Mapfre to positive.
Looking ahead, S&P expects earnings growth to slow across 2026 and 2027. The company said underwriting conditions and financial market conditions are unlikely to improve significantly, and forecast that sector earnings would remain broadly stable or rise only modestly during 2026.
S&P also warned that uncertainty surrounding the conflict in the Middle East continues to create risks for global markets, supply chains, commodity prices, and economic activity. The company said these factors were not fully reflected in its base-case forecasts.
Among the risks identified for 2026 were geopolitical tensions, market volatility, pressure on investment returns, rising exposure to private assets, elevated reinsurance costs, and regulatory challenges. S&P said prolonged inflation and weaker economic growth could increase claims costs and place pressure on consumer spending.
In property and casualty insurance, the company said underwriting results remained strong in 2025 due to favourable pricing conditions, lower catastrophe losses, and disciplined risk selection. Combined ratios averaged around 92%, with insurers including Allianz, Zurich, Tokio Marine, AIG, and QBE benefiting from improved catastrophe performance.
S&P said personal insurance lines showed stronger improvement than commercial lines, largely because pricing increases in personal lines were more pronounced. The company added that margins in commercial insurance appear to have stabilised following several years of substantial rate increases.
The report said life insurers also recorded higher earnings in 2025, driven by stronger demand for retirement and savings products, higher investment yields, and improved business mix. S&P noted that Asia-Pacific insurers delivered particularly strong growth due to demographic changes, rising insurance awareness, and increasing demand for long-term financial protection products.
While S&P expects life insurance earnings to remain resilient in 2026, it said profitability could be affected by weaker equity markets, geopolitical uncertainty, and potential credit losses linked to private debt investments.
The company also said insurers continued to prioritise shareholder returns through dividends and share buyback programmes. Average dividend payout ratios remained between 45% and 50%, while many insurers announced further buybacks supported by strong capital positions and manageable leverage levels.
Marc-Philippe Juilliard, Credit Analyst at S&P Global Ratings, commented: “Robust earnings translated into positive rating actions. GMIs demonstrated strong capitalisation, which led to consistently high average dividend payout ratios of about 45% and substantial share buyback programmes.”
S&P Global Ratings said it does not expect large-scale merger and acquisition activity to accelerate significantly in 2026, although selected acquisitions and restructuring activity are likely to continue across the sector.
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