European insurers experience premium growth in 2011

Europe’s Top 10 insurers saw their 2011 written premiums increase by 3% over the previous year, despite turbulence over the sovereign debt crisis in the euro zone, according to a recent report by Spanish-based insurer Fundación Mapfre.

Insurers in the group reported a hike in overall gross premiums to €198 billion ($251 billion), an increase of €5.8 billion ($7.2 billion) from 2010 figures. German-based Allianz was the top insurer as measured by gross written premium, with a 2% rise in gross premiums to €45 billion ($55.8 billion).

Other insurers by order of gross premium ranking included AXA (France), Zurich (Switzerland), Generali (Italy), Achmea (Netherlands), Mapfre (Spain), Ergo (Germany), Aviva (United Kingdom), Groupama (France) and RSA (United Kingdom).

Mapfre had the highest premium growth on a year-over-year basis, up more than 13% to €14.5 billion ($17.96 billion). Of the Top 10, only two insurers experienced negative premium growth – Zurich at 1.4% and Achmea at 0.4%.

“In general terms, revenue growth was due both to higher volume (number of policies) and higher rates,” Fundación Mapfre noted in its report. “Continuing with a strategy to improve their margins, which began in 2010, most insurers raised their average premium in 2011 without damaging their client portfolio.”

The combined ratio worsened for five of the 10 insurers due mainly to a rise in claims as a result of major catastrophic events and bad weather and, to a lesser extent, to higher expenditure, according to Mapfre.

While 2011 was a near-record year for global catastrophes and insured losses, the most expensive natural disaster for the insurance sector in Europe was flooding in Denmark in July, which caused an estimate $800 million in damage. Winter storms also caused additional damage in the north of Europe and along the Mediterranean coast, the report noted.