This chapter looks at the overall profitability of insurers in 2024. It first examines insurer profitability in 2024 based on return on equity (ROE) and then at the evolution of insurer shareholder equity. It finds that insurers’ profitability improved in 2024 overall, driven by positive underwriting and investment performance, which reinforced each other in most jurisdictions.
Global Insurance Market Trends 2025
Abstract
Insurers recorded overall profitability in 2024. Return on equity (ROE), a key indicator of corporate performance, was negative in only two jurisdictions: for non-life and composite insurers in Argentina, and for non-life insurers in Slovenia (Figure 5.1). The strongest ROE was recorded in Türkiye and several Latin American countries such as Mexico and Peru. Compared with 2023, more than half of the jurisdictions (13 out of 24) saw improved profitability in the life sector (OECD, 2024[3]). The most significant increase was in Argentina, where ROE rose by 10.5 p.p. in 2024. In the non-life sector, more than half of the jurisdictions (16 out of 30) also recorded higher profitability, with Slovenia showing the largest gain at 40.9 p.p. In the composite sector, 65% of jurisdictions (11 out of 17) experienced an improvement in profitability, with the highest increase of 10.5 p.p. observed in Latvia.
In per cent
Note: For more details, please see the methodological notes in Annex B.
Source: OECD Global Insurance Statistics
Profitability reflected a combination of both underwriting and investment performance. In most jurisdictions, these two components were positive and reinforced each other, contributing to strong overall results. However, in some cases, they moved in opposite directions, offsetting each other’s impact. For example, in Slovenia, investment losses among non-life insurers outweighed underwriting gains, leading to negative overall profitability. In contrast, in Colombia, investment gains in the non-life sector compensated for underwriting losses, resulting in positive overall profitability.
Insurer shareholder equity increased in most jurisdictions in 2024 (Figure 5.2). Shareholder equity increased in 24 out of 32 jurisdictions for life insurers, 36 out of 39 jurisdictions for non-life insurers and 17 out of 24 jurisdictions for composite insurers. Like in 2023, the highest increase occurred in Argentina and Türkiye in 2024, driven by high inflation in these two countries (OECD, 2024[3]).
In per cent
Note: For more details, please see the methodological notes in Annex B.
Source: OECD Global Insurance Statistics
Positive insurer profitability in 2024 supported the growth of shareholder equity during the year. When profitability increases, retained earnings might rise, increasing shareholder equity. Some other factors such as new share issuance, decrease in dividends and unrealised capital gains might have increased shareholder equity in some jurisdictions (OECD, 2024[3]).