News Regional16 Oct 2020

Asia:Study shows life predominant insurers outperform other insurance companies

| 16 Oct 2020

The top 50 insurers in Asia showed an aggregate premium income of $1,255bn in 2019, 3.1% higher than in 2018, according to an analysis by global consulting firm Roland Berger.

The consultancy has classified the 50 insurers into four clusters according to their business portfolio. The categories are: life specialist; life predominant; non-life predominant and non-life specialist.

A life specialist company is categorised as having 80-100% premiums coming from life business; a life predominant insurer generates 50-80% of premiums from life business; a non-life predominant derives 20-50% of premiums from life operations while a non-life specialist rakes in 0-20% of premiums from life activities.

In a report titled “Financial Performance of the Top 50 Insurers in Asian markets”, the author Mr Laurent Doucet who is also a partner of Roland Berger, notes that in 2019, life predominant insurers enjoyed a higher RoE on average compared to the other categories of insurers while non-life predominant insurers produced notable growth.

The performance of the Top 50 insurers in Asia in terms of premiums and RoE in 2019 was as follows:

Category

Number of insurers

Premium Income

Return on Equity

2019 US$ bn

Y-oY Change

2019 %

Y-oY Change

Life specialist

30

652

+2.9%

+9.2

+2.3 ppts

Life predominant

7

296

+2.7%

+12.1

+1.1 ppts

Non-life predominant

3

159

+4.7%

+9.4

+2.2 ppts

Non-life specialist

10

149

+2.9%

+5.0

-1.1 ppts

Top 50 Insurers

50

1,255

+3.1%

+9.8

+1.6 ppts

 

Indeed, over the 2010-2019 period in Asia, life predominant insurers outperformed other categories of insurers with a higher average RoE of around 11.0% and premium income CAGR of around 7.4%. Non-life specialist insurers showed the least outstanding performance with average RoE of around 5.5% and premium income CAGR of around 0.8%.

For more details, contact Mr Doucet at laurent.doucet@rolandberger.com.

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