This Performance Update examines 2024 financial performance among a 19-company sample of the largest Property & Casualty (P&C) and Life & Health (L/H) Insurance companies, with median revenue of approximately $19B. Our full Insurance Industry report, which is typically published in the second quarter, will summarize 2024 executive compensation actions, trends, and performance alignment.

Key Observations – 2024 Results

• Top line growth in the insurance industry was particularly strong in 2024, with median Revenue growth of +10.1% for all insurers in our sample, the largest increase over the last ten years. Relative to prior years, L/H insurers particularly outperformed, with Revenues increasing +6.1% at median in 2024, the first year-over-year increase since 2019. Revenue and Premium growth for P&C insurers in 2024 were up +12.3% and +9.0%, respectively, which was in line with reported growth in 2023.
• Net Investment Income continued to be very strong in 2024, with the full sample up +11.4% year-over-year at median. Growth was slightly below 2023 (+12.1%), but above the prior five-year average (+3.1%). P&C insurers (+21.5%) outperformed L/H insurers (+6.9%) with respect to net investment income growth in 2024.
• Operating profitability improved year-over-year, with Operating Income increasing +8.1% and Operating ROE up +0.9 percentage points at median, for the full sample. These results are generally aligned with increases in 2023 (+9.9% and +1.5 percentage points, respectively) but meaningfully better than the prior five-year average from 2019 to 2023 (+5.6% and +0.2 percentage points, respectively). Both P&C and L/H insurers generally reported Operating Income and Operating ROE growth in 2024, however, operating profitability growth for P&C insurers was significantly stronger than L/H insurers in the study.
• In 2024, catastrophe losses (CATs) for P&C insurers increased +13.6% at median, compared to +2.6% in 2023 and 0.0% in 2022. Only 2 of 10 P&C insurers in our sample had lower CATs in 2024 than prior year. Cumulative reported CATs among our sample reached a new record of $16.9 billion in 2024, up from $15.7 billion in 2023 (+7.3%). Munich Re reported a total of $140 billion estimated insured losses in US from natural disasters in 2024.
• Consistent with the strong financial results reported in the insurance industry as a whole, share price performance in 2024 was also exceptional, with 18 of 19 companies in our sample having positive TSR. Median 2024 TSR was +27.7%, which is the largest year-over-year return since 2013 among the companies in our sample. Median TSR increase among P&C insurers (+29.7%) and L/H insurers (+24.8%) were generally aligned, and each among the highest returns over the past decade for their respective industry – only 2019 was higher for P&C insurers (+30.2%), and only 2021 was higher for L/H insurers (+34.5%).

For questions or more information, please contact the CAP Insurance Team:

Melissa Burek
Partner
[email protected]
212-921-9354

Roman Beleuta
Principal
[email protected]
646-532-5932

Kyle White
Associate
[email protected]
646-568-1161

Gray Broaddus
Analyst
[email protected]
646-532-5931

CAP’s Insurance Sample

P&C Companies

• Allstate Corporation
• American International Group, Inc.
• Chubb Limited
• Cincinnati Financial
• CNA Financial Corporation
• Hanover
• Hartford Insurance Group
• Progressive Corporation
• Travelers Companies, Inc.
• W.R. Berkley.

Life & Health Companies

• Aflac Incorporated
• Genworth Financial, Inc.
• Globe Life
• Lincoln National Corporation
• Manulife Financial Corporation
• MetLife, Inc.
• Principal Financial Group Inc.
• Prudential Financial, Inc.
• Unum Group