Aon says profitable growth linked to focus and relevance

But profitability varied across property and casualty lines.

Aon has identified the insurers and reinsurers that achieved profitable growth across both soft and hard market cycles between 2013 and 2024 by comparing compound annual growth rates (CAGR) with returns on average equity (RoAE) for 120 firms writing nearly $2t in gross written premium (GWP). 

The study shows that strategic focus and relevance have consistently driven stronger financial results.

In 2024, the group recorded a 14.7% RoAE, up from the 10-year average of 8.7%. 

The combined operating ratio (COR) improved to 93.6%, its lowest since 2006, whilst GWP grew 7.5% to $1.9t, above the long-term CAGR of 6.4% but down from the 2021 peak of 10.2%.

Profitability varied across property and casualty lines, with globally diversified and specialised portfolios maintaining the lowest CORs for a third consecutive year.

Aon recommends five priorities for insurers to build competitiveness: redefining growth strategies, aligning capital with strategy, investing in data, strengthening client and distribution focus, and rethinking talent.