Direct Answer
34 SEC filers are classified under the Standard Industrial Classification codes that describe the reinsurance industry, and their latest annual reports show $707.7 billion of combined revenue and a median operating margin of 13.6%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Reinsurers take on a share of the insurance risk that primary insurers write, covering property, casualty and life exposures, and earn premiums minus claims. Capital strength and pricing discipline decide whether they earn adequate returns. The first numbers to compare across companies here are combined ratio, premium growth and return on equity.
Key Industry Metrics
- Combined ratio: Claims plus expenses as a share of premiums. It varies with large loss events, so look at several years rather than one.
- Premium growth: Increase in premiums written, from new business and price changes. Rates tend to rise after heavy loss years.
- Return on equity: Net income as a share of shareholders' equity. It shows profitability relative to capital, and swings with catastrophes.
- Reserve development: Revisions to earlier claim estimates. Adverse development indicates past underpricing and reduces earnings.
- Capital adequacy: Capital held compared with risk under regulators' and rating agencies' models. It supports writing business and paying dividends.
Primary Macro Drivers
- Catastrophe experience: Large storms, quakes and other losses set claims in any year, so catastrophe experience moves combined ratio and capital.
- Pricing cycle: Prices rise after losses and fall when capital is plentiful, so the cycle drives premium growth and return on equity.
- Capital supply: New capital from investors and alternative vehicles can enter and lower prices, so supply affects margin.
- Interest rates: Float is invested, so higher bond yields add investment income that supports results alongside underwriting.
Major Risks
- Large loss events: One severe year can erase profit and reduce capital. Watch combined ratio, capital adequacy and loss disclosures.
- Soft pricing: Price cuts when capital is plentiful reduce margins. Watch premium growth and rate change against loss trend.
- Reserve risk: Past claims may cost more than expected, requiring charges. Watch reserve development and loss trend.
- Credit risk of counterparties: Counterparties who fail to pay can leave losses. Watch credit exposure to ceding companies and retrocessionaires.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Reinsurance Filers in the SEC Record
34 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 6331, 6399. Their latest fiscal years end in 2025, and together they reported $707.7 billion of revenue. Median revenue growth over the prior year was 6.6%. Median operating margin was 13.6% and median net margin 12.5%. Median total liabilities were 76% of total assets, and 31 of 34 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Berkshire Hathaway Inc | $371.4 billion | 0.0% | n/a | 18.0% | FY 2025 |
| Allstate Corp | $67.7 billion | 5.6% | n/a | 15.0% | FY 2025 |
| Travelers Companies, Inc. | $48.8 billion | 5.2% | n/a | 12.9% | FY 2025 |
| Hartford Insurance Group, Inc. | $28.4 billion | 6.9% | n/a | 13.5% | FY 2025 |
| American International Group, Inc. | $26.8 billion | -1.7% | n/a | 11.6% | FY 2025 |
| Arch Capital Group Ltd. | $19.9 billion | 14.3% | n/a | 22.1% | FY 2025 |
| Loews Corp | $18.5 billion | 5.4% | n/a | 9.0% | FY 2025 |
| Everest Group, Ltd. | $17.5 billion | 1.2% | n/a | 9.1% | FY 2025 |
The 8 largest of 34 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Reinsurance guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Reinsurance industry?
Key performance indicators for the Reinsurance industry include: Combined ratio, Premium growth, Return on equity, Reserve development, Capital adequacy. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Reinsurance industry?
The Reinsurance industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Reinsurance industry?
The primary risks for Reinsurance companies include: Large loss events, Soft pricing, Reserve risk, Credit risk of counterparties. Investors should assess each company's exposure to these factors and its track record of navigating them.