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Aon, a global re/insurance broking group, has analysed $2 trillion of insurance premiums to identify the top profitable growth performers, concluding that “strategic focus and relevance consistently drive stronger financial outcomes — regardless of market conditions.”
By comparing compound annual growth rates (CAGR) with returns on average equity (RoAE) for 120 re/insurers, Aon provides a long-term analysis of the firms financials to help identify those that achieved profitable growth through both soft and hard market cycles from 2013 to 2024.
Aon’s Profitable Growth research revealed that in 2024, the analysis group delivered a 14.7% RoAE, a six-percentage point improvement on 2013-2023 average of 8.7%.
Similarly, the group’s combined operating ratio (COR) of 93.6 % was the lowest since 2006 and a 3.4 percentage point improvement on the 10-year average.
In the same year, the group’s GWP increased 7.5% to $1.9 trillion. Despite exceeding the 2013-2023 CAGR of 6.4%, this figure represented a third year of decelerating growth rates, from the high of 10.2 percent in 2021.
The study also found a high variance in profitability across different property and casualty segments. Notably, for the third consecutive year, the most profitable segments were those with the most globally diversified portfolios in both insurance and reinsurance, and the most specialised.
Paul Campbell, global growth leader in the Strategy and Technology Group for Aon, said: “In a market defined by volatility, insurers must embed strategic relevance into every decision to outperform through the cycle.
“We are collaborating with clients on strategies to become top performing insurers to smooth volatility in financial results, become more relevant to customers and make their firms a more attractive proposition to investors.”
Sherif Zakhary, CEO of Strategy and Technology Group and Inpoint for Aon, added: “Insurers must pivot from product suppliers to performance partners which means being proactive, insightful and deeply attuned to client needs across geographies and sectors.
“However, legacy operating models, rigid capital structures and siloed distribution strategies are holding some insurers back. This is why Aon’s Strategy and Technology Group has built its data-driven approach and nurtured its talent to create and execute clients plans for resilience and growth.”
Based on the research, Aon is recommending five actionable strategies for clients to enhance relevance and their competitiveness:
- Redefine growth strategy;
- Align capital with strategy;
- Invest in data-driven decision making;
- Understand client and channel needs;
- Rethink talent strategy for the next cycle.
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