Core Viewpoint - The composite of seven reinsurance groups in the US and Bermuda has shown favorable performance in 2024, achieving its fourth consecutive year of underwriting profitability despite a slight increase in the combined ratio compared to 2023 [1][3]. Group 1: Financial Performance - The composite achieved a combined ratio of 89.5 in 2024, reflecting a 4.4-point increase from 2023 but still showing strong improvement compared to years prior to 2023 [3][4]. - Overall profitability in 2024 was lower than the exceptional outcomes of 2023, which included historically strong underwriting margins and significant investment gains [5]. - Total net premiums written (NPW) rose by 13.2% in 2024, up from 5.3% in 2023, with growth in 2023 previously constrained by increased reinsurance cessions [6]. Group 2: Premium Growth - Property and casualty (P/C) gross written premiums increased by 12.3% in 2024, compared to 10.5% in 2023, primarily driven by RenaissanceRe following the Validus transaction [7]. - Excluding RenaissanceRe, P/C premium growth moderated to 9.5% in 2024 from 12.9% in 2023 [7]. - A broader trend of slowing top-line growth is noted, particularly in property exposures where pricing began to soften in 2025 [8]. Group 3: Catastrophe and Losses - Natural catastrophe activity remained high in 2024, with estimated global insured losses reaching approximately USD 140 billion, the third-highest on record [10]. - Catastrophe events added 6.7 points to the composite's combined ratio, compared to 4.0 points in 2023 [10]. - Loss reserve development was less favorable in 2024, contributing only 0.3 points of favorable development versus 3.7 points in 2023 [11]. Group 4: Investment Performance - Strong investment performance continued to support earnings, with net investment income more than doubling over two years to reach USD 8.8 billion in 2024 [12]. - The composite posted a return on equity (ROE) of 16.8% in 2024, down from 23.0% in 2023 due to one-time accounting gains [12]. Group 5: Market Dynamics - The composite's GAAP equity grew by 9.6% in 2024, slightly lagging behind NPW and loss reserve increases [13]. - New company formation in the US and Bermuda reinsurance market has remained limited due to an abundance of capital and investor caution [14]. - Future capital flows are expected to favor established reinsurers with proven track records, while opportunities for new entrants are likely to remain constrained [14].