In a significant shift within the global reinsurance landscape, Munich Re has ascended to the pinnacle of AM Best's rankings for companies adhering to IFRS 17 reporting standards. Concurrently, the venerable Lloyd's marketplace has secured the top spot for non-IFRS 17 reinsurers, outperforming Berkshire Hathaway. These developments, based on comprehensive year-end 2025 financial data, underscore a period of robust underwriting and substantial capital accumulation across the industry, even as market conditions witnessed moderate price adjustments.
AM Best's analysis categorizes reinsurers into two distinct groups: those reporting under IFRS 17, evaluated by gross reinsurance revenue, and non-IFRS 17 reporters, assessed by gross written reinsurance premium (GPW). The agency's findings reveal sustained strength in underwriting performance throughout 2025, complemented by record-breaking capital generation. This favorable environment was largely attributed to several years of hardening rates and improved terms and conditions for reinsurers. Associate Director Dan Hofmeister noted that while some risk-adjusted rate reductions occurred, the market largely maintained favorable terms. The absence of major hurricane landfalls in the United States in 2025 also contributed positively to profitability, though severe convective storms still inflicted an estimated $61 billion in losses.
Munich Re's resurgence to the top of the IFRS 17 list, with $35.418 billion in gross reinsurance revenue, came despite a slight decline in its consolidated revenue. This was partly facilitated by the Euro's strength against the US Dollar. Swiss Re, which previously held the leading position, experienced a 4.5% decline in revenue to $34.564 billion. The top five IFRS 17 reinsurers remained largely stable, with Hannover Re, SCOR, and China Re following Munich Re and Swiss Re. For non-IFRS 17 reporters, Lloyd's leapfrog over Berkshire Hathaway was attributed to the British Pound's appreciation against the US Dollar and significant growth in Lloyd's reinsurance business, fueled by increased underwriting activity and a strong demand for catastrophe protection. Lloyd's reported $27.058 billion in life and non-life reinsurance GPW, with Berkshire Hathaway trailing at $25.470 billion. The top five in this category also included Reinsurance Group of America, Everest, and RenaissanceRe.
The evolving market dynamics, particularly with more reinsurers transitioning to IFRS 17, suggest a continuous refinement of these rankings. AM Best anticipates a normalization of underwriting performance after the exceptionally strong results observed between 2023 and 2025, as the industry adapts to new and evolving risks. Furthermore, the increasing influence of third-party capital, including insurance-linked securities (ILS) managers, presents an interesting dimension. While direct visibility into this impact is limited, the substantial premiums written by entities like Nephila Capital through various structures highlight the growing role of investor capital in shaping the competitive landscape. This influx of capital not only bolsters the financial strength of ranked reinsurers but also introduces new players who, if considered, could significantly alter the established order, underscoring the innovative and adaptable nature of the global reinsurance market.
