Insurers managed to record profits in most cases in 2022. This positive performance to some extent comes from the underwriting gains that insurers still achieved in 2022 in the non-life sector, despite the rise in claims payments. However, the lower underwriting gains, as well as the lower investment performance, led many insurers to achieve lower profits than in 2021, especially in the non-life sector that was most impacted by claims inflation.
When measured by return on equity, the profitability of insurers appears larger as shareholder equity declines. Shareholder equity nonetheless declined in 2022 in many cases, especially for life and composite insurers, because of the downward revaluation of reserves due to unrealised losses incurred on some securities.