Cover Title 26/29 45 Light BlackCover Subtitle 12/15 — 65 Medium Black
Reinsurance market reportResults for full-year 2019
April 2020
Reinsurance Market Report – Full Year 2019
April 2020
Contents Key findings ............................................................................................................................................. 1
At a glance .............................................................................................................................................. 2
Capital.................................................................................................................................................. 2
Underlying RoE for the SUBSET ......................................................................................................... 3
Combined ratio for the SUBSET ......................................................................................................... 4
Expenses for the SUBSET .................................................................................................................. 5
Investment yield for the SUBSET ........................................................................................................ 5
Capital ..................................................................................................................................................... 6
Total reinsurance dedicated capital ..................................................................................................... 6
INDEX capital ...................................................................................................................................... 7
Return of capital .................................................................................................................................. 9
Return on equity .................................................................................................................................... 11
Underwriting performance ..................................................................................................................... 13
Premium volumes .............................................................................................................................. 13
Combined ratios ................................................................................................................................ 14
Prior year loss development .............................................................................................................. 17
Catastrophe losses ............................................................................................................................ 20
Expense ratios ................................................................................................................................... 22
Investment performance ....................................................................................................................... 23
Appendix 1 ............................................................................................................................................ 25
Methodology ...................................................................................................................................... 25
Appendix 2 ............................................................................................................................................ 26
Reinsurance Market Report – Full Year 2019
April 2020 1
Key findings Welcome to the 11th semi-annual publication of Willis Re’s Reinsurance market report which tracks
the capital and profitability of the global reinsurance industry.
Global reinsurance dedicated capital totalled USD 605B as of the end of 2019. This is a robust 15%
increase from a re-stated USD 526B at year-end 2018(1). As seen at the half-year stage, strong
investment markets were the main driver of the industry’s capital growth. Alternative capital remained
fairly stable, contracting only 3%.
Over the past five years, and not counting the impact of our 2018 restatement, we calculate that the
industry’s capital base has grown at an average annual pace of 4%.
Year-to-date 2020 much of this expansion will have unwound, due to the steep sell-off in equity and
corporate bond markets. During March and April 2020 there have so far been significant swings in
the investment markets, resulting in impacts to the global reinsurance capital base ranging from -5%
to as much as -20%.
Focusing on the INDEX(2) companies, which contribute the largest component of the industry’s capital:
■ INDEX companies’ capital grew 19% to USD 496B (FY 2018 re-stated: USD 416B), which
was entirely attributable to unrealised investment appreciation plus investment gains
recognised within net earnings.
■ The appreciation of National Indemnity’s large equity investment portfolio accounted for fully
60% of this growth. Excluding that, INDEX growth was 8%.
Drilling further into profitability, for the SUBSET(2) of companies within the INDEX that provide the
relevant disclosure:
■ The reported combined ratio for the SUBSET increased in 2019, from 99.2% to 100.6%.
■ The support to combined ratios and earnings from reserve releases continues to reduce. In
2019, the benefit to the SUBSET combined ratio reduced from 4.6% to 2.3%.
■ On an underlying basis (normalising nat cats and stripping out reserve releases), the
underlying combined ratio was 103.1%. This metric has been gently increasing every year
going back to 2013, including a small deterioration versus 102.3% in 2018.
■ Given low and often negative interest rates, reinsurers need to be earning a combined ratio
well below 100% to achieve an adequate RoE. Price increases began to accelerate in a
number of market segments in 2019, but a 103% starting point shows the large gap the
industry needs to close in order to restore profitability.
■ On the other hand, investment yields in 2019 were substantially augmented by investment
gains. The running investment yield (ie bond coupons, equity dividends, etc.) held roughly
stable at 2.9%, but gains added a further 1.5% to take the all-in yield to 4.4%.
■ Given reinsurers’ strong gearing to investments, these gains had a significant impact on RoE.
The average RoE for SUBSET companies expanded strongly in 2019, from 4.2% to 9.7%.
■ On an underlying basis, however, the SUBSET’s RoE remains low. Normalising reported
RoEs for nat cat losses and stripping out reserve releases, we put the underlying RoE ex-
investment gains at 3.2%. This is a further decline versus 2018’s already low 4.3% and
remains well below the industry’s cost of capital.
(1) We introduced a change in methodology with our half-year 2019 report which included a broader definition of capital, and have additionally
conducted our annual review of constituents with this report. See Appendix 1 for details on our methodology.
(2) INDEX relates to those companies listed within Appendix 2 of this report. SUBSET is defined as those companies that make the relevant
disclosure in relation to nat cat losses and prior year reserve releases. Appendix 2 also identifies the SUBSET companies.
Reinsurance Market Report – Full Year 2019
2 April 2020
At a glance Capital
Total industry capital grew robustly in 2019
Total reinsurance dedicated capital (USD billions)(3)
Growth was attributable to INDEX capital, which was fuelled by investment gains
Capital analysis for the INDEX (USD billions)
(3) We have re-stated year-end 2018 capital from USD 461B to USD 526B, to allow for a change in methodology introduced with our HY 2019
report and to allow for our annual review of constituents. The former adds USD 61B to capital and the latter adds USD 20B.
344 330 344371
335
416
496
26 27 3027
33
17
18
6570
7588
93
93
91
0
100
200
300
400
500
600
700
2014 2015 2016 2017 2018 2018 (re-stated)
FY 2019
INDEX Major regional and local reinsurers + pro-rated portion of capital within major groups Alternative Capital
427449
486461
526
605
435
335
416
496
61
20 2
32 (24)48
419
250
300
350
400
450
500
550
Shareholders'equity brought
forward
HY 2019change in
methodology
FY 2019change in
constituents
Adjustedopeningcapital
New reinsurer Net income Buy backs /dividends
Unrealisedinvestment
appreciation
Other(including FXmovement)
Total capitalcarriedforward
National Indemnity
Reinsurance Market Report – Full Year 2019
April 2020 3
Underlying RoE for the SUBSET
Strong RoE due to investment gains; excluding gains underlying RoE declined slightly to 3.2%
RoE analysis for the SUBSET(4)
Underlying ex-gains RoE still in gentle decline, and well below the industry’s cost of capital
RoE for the SUBSET(5)
(4) Note that we have slightly revised the impact of normalised nat cats on RoE and have restated prior-year underlying RoEs. As originally
reported, FY 2018’s underlying RoE was 2.7%.
(5) S&P WACC (weighted average cost of capital) figures. For FY 2018, data labels relate to the dotted lines, ie RoEs excluding investment
gains/losses.
1.4%
4.5% 4.5% 4.3% 4.5%3.2%
8.2%
2.8%
5.3%3.5%
4.4% 4.5%
2.3%2.0%
1.2%
-0.3% -0.3%
5.2%
5.2%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Re
po
rte
d R
OE
Na
t ca
t lo
ss
Na
t ca
t lo
ss -
no
rmalis
ed
Prio
r year
deve
lop
me
nt
Un
de
rlyin
g R
OE
Re
po
rte
d R
OE
Na
t ca
t lo
ss
Na
t ca
t lo
ss -
no
rmalis
ed
Prio
r year
deve
lop
me
nt
Un
de
rlyin
g R
OE
Re
po
rte
d R
OE
Na
t ca
t lo
ss
Na
t ca
t lo
ss -
no
rmalis
ed
Prio
r year
deve
lop
me
nt
Un
de
rlyin
g R
OE
2017 2018 2019
Investment gains
Investment gains
11.6%11.3%
10.2%
8.2%
1.4%
9.7%
7.2%
6.3%
4.2% 4.3% 4.5%
8.4%
4.5% 4.5%
4.3%3.2%
0%
2%
4%
6%
8%
10%
12%
14%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Reported RoE for the SUBSET Underlying RoE for the SUBSET
Reported RoE for the SUBSET, excluding investment gains/losses Underlying RoE for the SUBSET, excluding investment gains/losses
WACC
Reinsurance Market Report – Full Year 2019
4 April 2020
Combined ratio for the SUBSET
Reported and underlying combined ratios increased in 2019
Reported and underlying combined ratio for the SUBSET(6)
Less support from reserve releases
Combined ratio detail for the SUBSET
SUBSET FY
2013 FY
2014 FY
2015 FY
2016 FY
2017 FY
2018 FY
2019
Reported combined ratio 90.3% 90.7% 89.3% 92.9% 107.4% 99.2% 100.6%
Remove prior year development 6.2% 5.6% 6.7% 6.3% 5.3% 4.6% 2.3%
Accident year combined ratio 96.5% 96.3% 96.0% 99.2% 112.7% 103.8% 102.9%
Strip out nat cat loss -4.8% -2.8% -1.5% -4.7% -18.1% -8.6% -8.1%
Ex-nat cat accident year combined ratio
91.7% 93.5% 94.5% 94.5% 94.6% 95.2% 94.9%
Add in normalised nat cat loss 6.4% 6.4% 6.4% 6.4% 6.4% 7.1% 8.2%
Underlying combined ratio 98.1% 99.9% 100.9% 100.9% 101.0% 102.3% 103.1%
(6) The normalised nat cat loss and the underlying combined ratio metrics were new in our HY 2019 report and the full-year figures are being
shown for the first time in this report. We replace actual nat cats with their five year moving average (measured on a full-year basis).
90.3%90.7%
89.3%
92.9%
107.4%
99.2%100.6%
98.1%
99.9%100.9%
100.9%
101.0%
102.3%
103.1%
85%
90%
95%
100%
105%
110%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Reported combined ratio for the SUBSET Underlying combined ratio
Reinsurance Market Report – Full Year 2019
April 2020 5
Expenses for the SUBSET
Robust premium growth outpaced expense growth in 2019, bringing the expense ratio down
Weighted average expense ratio for the SUBSET
Investment yield for the SUBSET
Overall investment yield boosted by gains (both realised and unrealised)
Investment yield for the SUBSET(7)
(7) Running yield captures items such as bond coupons, equity dividends and interest income.
32.0% 32.1%
31.2%
32.1%
33.1% 33.2%
32.8%33.0%
31.8%
30%
31%
31%
32%
32%
33%
33%
34%
2013 2014 2015 2016 2017 2018 2019
Revised methodology As originally reported
2.8% 2.9%
-0.1%
1.5%
-1%
0%
1%
2%
3%
4%
5%
FY 2018 FY 2019
Running yield Gains yield
Reinsurance Market Report – Full Year 2019
6 April 2020
Capital Total reinsurance dedicated capital
Total industry capital grew robustly in 2019
Chart 1: Total reinsurance dedicated capital (USD billions)(8)
■ Global reinsurance dedicated capital totalled USD 605B as of the end of 2019. This is a
robust 15% increase from a re-stated USD 526B at year-end 2018(9).
■ Over the past five years, and not counting the impact of our 2018 restatement, we calculate
that the industry’s capital base has grown by 22%, equivalent to an average annual pace of
4%.
■ INDEX companies’ capital grew 19% to USD 496B (FY 2018 re-stated: USD 416B). This was
partly offset by a modest 3% contraction in alternative capital. This drop was primarily due to
loss deterioration from 2017-18 nat cats. While some investors had outflows of capital in
2019, others with different strategies had quite significant inflows.
(8) We have re-stated year-end 2018 capital from USD 461B to USD 526B, to allow for a change in methodology introduced with our HY 2019
report and to allow for our annual review of constituents. The former adds USD 61B to capital and the latter adds USD 20B. (9) We introduced a change in methodology with our half-year 2019 report which included a broader definition of capital, and have additionally
conducted our annual review of constituents with this report. See Appendix 1 for details on our methodology.
344 330 344371
335
416
496
26 27 3027
33
17
18
6570
7588
93
93
91
0
100
200
300
400
500
600
700
2014 2015 2016 2017 2018 2018 (re-stated)
FY 2019
INDEX Major regional and local reinsurers + pro-rated portion of capital within major groups Alternative Capital
427449
486461
526
605
435
Reinsurance Market Report – Full Year 2019
April 2020 7
INDEX capital
Growth was attributable to INDEX capital, which was fuelled by investment gains
Chart 2: Capital analysis for the INDEX (USD billions)
■ As seen at the half-year stage, strong investment markets were the main driver of the
industry’s capital growth.
■ This is best illustrated in the waterfall Chart 2 of INDEX companies’ capital development. As
well as strong unrealised investment appreciation, totalling USD 67B, investment gains also
accounted for over half of net income (as discussed below in the RoE section). Unrealised
investment appreciation plus gains recognised within net income accounted for the entirety of
the 19% growth in INDEX capital.
■ Fully 60% of the growth came from the USD 48B appreciation of National Indemnity’s large
equity investment portfolio and excluding that, INDEX growth was 8%.
335
416
496
61
20 2
32 (24)48
419
250
300
350
400
450
500
550
Shareholders'equity brought
forward
HY 2019change in
methodology
FY 2019change in
constituents
Adjustedopeningcapital
New reinsurer Net income Buy backs /dividends
Unrealisedinvestment
appreciation
Other(including FXmovement)
Total capitalcarriedforward
National Indemnity
Reinsurance Market Report – Full Year 2019
8 April 2020
National Indemnity led the growth in capital, due to strong gearing to equity markets
Chart 3: Movement in capital reported as at FY 2019 for the INDEX constituents(10)
■ National Indemnity also led its peers with 37% growth in its capital base in 2019. Only two
companies saw a reduction in capital in 2019 – Great West Lifeco and Sirius, with the former
deliberate taking down its capital base through a large dividend and share buy-back.
(10) Excludes companies who have not yet reported FY 2019.
36.9
% 32.9
%
22.8
%
21.7
%
20.7
%
19.8
%
18.6
%
18.4
%
17.4
%
16.7
%
15.1
%
14.7
%
14.6
%
14.2
%
12.8
%
11.7
%
11.7
%
11.4
%
10.0
%
9.8
% 6.6
%
6.6
%
6.2
%
6.1
% 2.8
%
2.6
%
1.7
%
-1.9
%
-3.8
%-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Reinsurance Market Report – Full Year 2019
April 2020 9
Return of capital
Reinsurers continue to pay out the vast majority of net income
Chart 4: Return of capital (as percent of opening shareholders’ equity) and payout ratio for the INDEX
■ Last year’s strong capital growth was achieved despite reinsurers continuing to pay out
significant percentages of both capital and earnings in the form of dividends and share buy-
backs.
■ In 2019 INDEX companies paid out USD 24B, or 6.4% of their opening shareholders’ equity,
mainly in the form of dividends. This was the highest payout in absolute terms and second-
higest in percentage terms going back to 2014.
■ The sector’s strong earnings means that the payout as a percentage of net income dropped in
2019, but to a still high 77%.
61%
77%
62%
130%
86%78%
0%
20%
40%
60%
80%
100%
120%
140%
0%
1%
2%
3%
4%
5%
6%
7%
8%
2014 2015 2016 2017 2018 2019
% o
f net earn
ings
% o
f openin
g s
hare
hold
ers
’ equity
Dividends / equity Share buy-backs / equity Total payout / net earnings
Reinsurance Market Report – Full Year 2019
10 April 2020
A number of reinsurers paid back more than 5% of their capital bases
Chart 5: Return of capital (as percent of opening shareholders’ equity) for the INDEX constituents
■ Great West Lifeco and IRB each paid out nearly 15% of their opening shareholders’ equity as
either dividends or buy-backs, and the capital returned in 2019 by most of the reinsurers in
our INDEX exceeded their 2018 payouts.
In the remainder of the report we focus on our SUBSET constituents.
14
.9%
14
.6%
9.7
% 9.0
%
8.5
%
7.1
% 6.2
%
6.0
%
5.5
%
5.5
% 4.7
%
4.4
% 3.3
%
3.2
%
3.1
%
3.0
%
2.8
%
2.6
%
2.5
%
2.5
%
1.9
%
1.7
%
1.3
%
1.2
% 0.3
%
0.0
%
0.0
%
0.0
%
0.0
%
0%
2%
4%
6%
8%
10%
12%
14%
16%
FY 2019
FY 2018
Reinsurance Market Report – Full Year 2019
April 2020 11
Return on equity
Strong RoE due to investment gains; excluding gains underlying RoE declined slightly to 3.2%
Chart 6: RoE analysis for the SUBSET(11)
Underlying ex-gains RoE still in gentle decline, and well below the industry’s cost of capital
Chart 7: RoE for the SUBSET(12)
(11) Note that we have slightly revised the impact of normalised nat cats on RoE and have restated prior-year underlying RoEs. As originally reported, FY 2018’s underlying RoE was 2.7% versus the 4.0% shown here. (12) S&P WACC (weighted average cost of capital) figures. For FY 2018, data labels relate to the dotted lines, ie RoEs excluding investment gains/losses.
1.4%
4.5% 4.5% 4.3% 4.5%3.2%
8.2%
2.8%
5.3%3.5%
4.4% 4.5%
2.3%2.0%
1.2%
-0.3% -0.3%
5.2%
5.2%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Re
po
rte
d R
OE
Na
t ca
t lo
ss
Na
t ca
t lo
ss -
no
rmalis
ed
Prio
r year
deve
lop
me
nt
Un
de
rlyin
g R
OE
Re
po
rte
d R
OE
Na
t ca
t lo
ss
Na
t ca
t lo
ss -
no
rmalis
ed
Prio
r year
deve
lop
me
nt
Un
de
rlyin
g R
OE
Re
po
rte
d R
OE
Na
t ca
t lo
ss
Na
t ca
t lo
ss -
no
rmalis
ed
Prio
r year
deve
lop
me
nt
Un
de
rlyin
g R
OE
2017 2018 2019
Investment gains
Investment gains
11.6%11.3%
10.2%
8.2%
1.4%
9.7%
7.2%
6.3%
4.2% 4.3% 4.5%
8.4%
4.5% 4.5%
4.3%3.2%
0%
2%
4%
6%
8%
10%
12%
14%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Reported RoE for the SUBSET Underlying RoE for the SUBSET
Reported RoE for the SUBSET, excluding investment gains/losses Underlying RoE for the SUBSET, excluding investment gains/losses
WACC Underlying RoE for the SUBSET, as previously published
Reinsurance Market Report – Full Year 2019
12 April 2020
■ The average RoE for SUBSET companies expanded strongly in 2019, from 4.2% to 9.7%.
However, this is entirely explained by a high level of investment gains. Excluding gains, the
RoE was stable at 4.5%.
■ Going a step further, and normalising reported RoEs for nat cat losses (replacing the actual
2019 impact with the five-year moving average) and stripping out reserve releases, we put the
underlying RoE at 8.4%. Removing the impact of investment gains, the underlying RoE was
3.2%. This is a further decline versus 2018’s already low 4.3%.
■ As discussed below, a principle driver of this underlying drop was a slightly higher underlying
combined ratio.
■ With this low underlying RoE, the SUBSET companies continue in aggregate to generate
shareholder returns that are materially below their weighted average cost of capital (WACC).
S&P puts the reinsurance industry’s WACC at 6.5-7.5%.
Strongest RoEs for the US/Bermudans, who recorded particularly high investment gains
Chart 8: Reported RoE for the SUBSET constituents(13)
■ Looking at individual company all-in RoEs, a number of reinsurers achieved RoEs well into
the teens. This was particularly the case with the US and Bermudan reinsurers where, under
US GAAP, unrealised gains on equities flow through the P&L.
(13) RoEs are based on ‘all-in’ net income. They do not necessarily match the ‘headline’ RoEs reported by the companies as these are sometimes struck on an operating net income basis.
17.8
%
16.5
%
15.3
%
14.6
%
13.6
%
13.6
%
13.1
%
11.9
%
11.8
%
10.5
%
10.4
%
9.5
% 6.9
%
6.1
% 2.5
%
-0.5
%
-2.8
%
-9.0
%
9.7%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
FY 2019
FY 2018
FY 2019 SUBSET
Reinsurance Market Report – Full Year 2019
April 2020 13
Underwriting performance Premium volumes
Double-digit premium growth reported by a number of SUBSET constituents
Chart 9: 2019 change in relevant(14) net earned premium (USD basis) for the SUBSET constituents
■ A number of SUBSET companies reported premium growth well into the double digits, with
average growth across the group of 11%.
■ Renaissance Re’s 69% growth was driven large measure by its Tokio Millenium Re
acquisition.
■ Swiss Re attributes its strong growth to an increased volume of large transactions and growth
in the nat cat line of business.
(14) Net earned premiums relate to the reinsurance segment if disclosure is available, or otherwise to the consolidated group. Appendix 1 explains in more detail.
68.9
%
19.8
%
17.6
%
16.3
%
14.2
%
12.7
%
12.4
%
9.9
%
9.6
%
6.8
%
6.6
%
4.8
%
4.1
%
2.0
%
-0.1
%
-0.1
%
-1.3
%
-2.7
%
11.0%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%FY 2019
FY 2019 SUBSET
Reinsurance Market Report – Full Year 2019
14 April 2020
Combined ratios
Reported and underlying combined ratios increased in 2019
Chart 10: Reported and underlying combined ratio for the SUBSET(15)
Less support from reserve releases
Chart 11: Combined ratio detail for the SUBSET
SUBSET FY
2013 FY
2014 FY
2015 FY
2016 FY
2017 FY
2018 FY
2019
Reported combined ratio 90.3% 90.7% 89.3% 92.9% 107.4% 99.2% 100.6%
Remove prior year development 6.2% 5.6% 6.7% 6.3% 5.3% 4.6% 2.3%
Accident year combined ratio 96.5% 96.3% 96.0% 99.2% 112.7% 103.8% 102.9%
Strip out nat cat loss -4.8% -2.8% -1.5% -4.7% -18.1% -8.6% -8.1%
Ex-nat cat accident year combined ratio
91.7% 93.5% 94.5% 94.5% 94.6% 95.2% 94.9%
Add in normalised nat cat loss 6.4% 6.4% 6.4% 6.4% 6.4% 7.1% 8.2%
Underlying combined ratio 98.1% 99.9% 100.9% 100.9% 101.0% 102.3% 103.1%
(15) The normalised nat cat loss and the underlying combined ratio metrics were new in our HY 2019 report and the full-year figures are being shown for the first time in this report. We replace actual nat cats with their five year moving average (measured on a full-year basis).
90.3%90.7%
89.3%
92.9%
107.4%
99.2%100.6%
98.1%
99.9%100.9%
100.9%
101.0%
102.3%
103.1%
85%
90%
95%
100%
105%
110%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Reported combined ratio for the SUBSET Underlying combined ratio
Reinsurance Market Report – Full Year 2019
April 2020 15
■ The reported combined ratio for the SUBSET increased in 2019, from 99.2% to 100.6%.
■ Replacing actual 2019 nat cats with a normalised level (the five year moving average) and
stripping out reserve releases, we calculate the underlying combined ratio to be 103.1%.
■ The underlying combined ratio has been gently increasing every year going back to 2013, and
the full-year 2019 increase reverses what had been a small improvement at the half-year
stage.
■ Given low and often negative interest rates, reinsurers need to be earning a combined ratio
well below 100% to achieve an adequate RoE.
■ Price increases began to accelerate in a number of market segments in 2019, but a 103%
starting point shows the large gap the industry needs to close in order to restore profitability.
Widely varying reported combined ratio performances in 2019 vs 2018
Chart 12: Reported combined ratios for the SUBSET constituents
11
0.8
%
10
9.1
%
10
7.4
%
10
4.0
%
10
3.2
%
10
3.1
%
10
1.2
%
10
1.0
%
10
0.9
%
10
0.3
%
99
.0%
98
.2%
96
.9%
96
.5%
95
.5%
94
.9%
92
.3%
80
.9%
100.6%
80%
85%
90%
95%
100%
105%
110%
115%
FY 2019
FY 2018
FY 2019 SUBSET
Reinsurance Market Report – Full Year 2019
16 April 2020
Few companies achieved underlying combined ratios below 100% in 2019
Chart 13: Underlying combined ratio for the SUBSET constituents
■ Several individual companies reported combined ratios significantly above 100%, with reserve
increases a frequent driver (more on this below).
■ On an underlying basis, over half of the 18 SUBSET companies recorded combined ratios
above 100%.
1
21
.3%
10
9.2
%
10
7.9
%
10
7.4
%
10
6.7
%
10
5.0
%
10
4.8
%
10
3.7
%
10
2.0
%
10
1.3
%
10
0.7
%
99
.8%
98
.3%
97
.6%
97
.5%
97
.2%
96
.5%
88
.7%
103.1%
80%
85%
90%
95%
100%
105%
110%
115%
120%
125%
FY 2019
FY 2018
FY 2019 SUBSET
Reinsurance Market Report – Full Year 2019
April 2020 17
Prior year loss development
Support from reserve releases continues to decline
Chart 14: Prior year development impact on combined ratio for the SUBSET (positive number =
benefit)(16)
■ The support to combined ratios and earnings from reserve releases continues to reduce. In
2019, the benefit to the SUBSET average combined ratio decreased from 4.6% to 2.3%.
(16) Positive number indicates a favourable prior year impact.
6.2%
5.6%
6.7%6.3%
5.3%
4.6%
2.3%
0%
1%
2%
3%
4%
5%
6%
7%
8%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Reinsurance Market Report – Full Year 2019
18 April 2020
Continued reduction in aggregate reserve releases
Chart 15: Prior year development for the SUBSET (positive number = benefit)(17)
■ As a percentage of group pre-tax profit, reserve releases average 13% for the SUBSET in
2019, the lowest ratio going back to 2009.
(17) Aggregate prior year reserve release calculated before tax.
4,357
5,303
6,853 6,861
7,631
6,837
7,8857,385
6,472
5,424
2,516
1,962
534
0%
25%
50%
75%
100%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 HY2018
HY2019
Aggregate amount of PYD (USD M) PYD as % pre-tax profit
Reinsurance Market Report – Full Year 2019
April 2020 19
Much reduced reserve releases for most of the companies
Chart 16: Prior year development impact on combined ratio for the SUBSET constituents (positive
number = benefit)
■ More companies are also now posting net adverse reserve development. In 2019, five of the
18 SUBSET companies recorded a net reserve increase, led by ARGO and Sirius with 7-8
percentage point impacts on the combined ratio.
20
.9%
14
.1%
7.2
%
6.5
%
5.6
%
4.5
%
3.6
%
3.0
%
1.9
%
1.1
%
1.1
%
0.9
%
0.8
%
-0.3
% -3.5
%
-4.4
% -7.2
%
-8.0
%
2.3%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35% FY 2019
FY 2018
FY 2019 SUBSET
Reinsurance Market Report – Full Year 2019
20 April 2020
Catastrophe losses
2019 saw below-average nat cats
Chart 17: Nat cat impact on combined ratio for SUBSET
Nearly all companies had a reduced nat cat load in 2019
Chart 18: Nat cat impact on combined ratio for SUBSET constituents
25.8%24.8%
4.8%
2.8%
1.5%
4.7%
18.1%
8.6%8.1%
0%
5%
10%
15%
20%
25%
30%
2005 … 2011 … 2013 2014 2015 2016 2017 2018 2019
13
.5%
12
.5%
12
.4%
11
.6%
10
.7%
10
.4%
10
.2%
10
.1%
10
.0%
7.4
%
6.9
% 5.4
%
5.0
%
5.9
% 4.1
%
3.8
%
3.1
%
1.9
%
8.1%
0%
5%
10%
15%
20%
25%
FY 2019
FY 2018
FY 2019 SUBSET
Reinsurance Market Report – Full Year 2019
April 2020 21
■ Research from both Munich Re and Swiss Re indicate that insured nat cat losses (at both the
insurance and reinsurance level) were below their ten year averages. Munich Re, for
instance, puts the 2019 insured loss at USD 52B, versus the ten year average of USD 65B.
Similarly, Swiss Re calculates insured losses to be USD 56B versus the ten year average of
USD 75B.
■ On our calculations, the average nat cat load for the SUBSET equates to 8.1 percentage
points on the combined ratio, close to the 8.2% five year average. Noteable events in the
year were typhoons Hagibis and Faxai in Japan and hurricane Dorian in the Atlantic.
Reinsurance Market Report – Full Year 2019
22 April 2020
Expense ratios
Robust premium growth outpaced expense growth in 2019, bringing the expense ratio down
Chart 19: Weighted average expense ratio for the SUBSET
■ On a like-for-like basis(18), the SUBSET expense ratio dropped slightly, from 32.1% in 2018 to
31.8%. The absolute amount of expenses grew by 10%, but this was slightly outpaced by the
SUBSET’s premium growth of 11%.
(18) The revised methodology we introduced with our half-year 2019 report has produced a discontinuity in our time series of SUBSET expense ratios. Several of the companies removed from our constituent list, partlcularly Lloyd’s companies, have high expense ratios. Therefore, our ‘revised methodology’ expense ratios for 2017 and 2018 are approximately one percentage point lower than the ratios we originally reported.
32.0%32.1%
31.2%
32.1%
33.1% 33.2%
32.8%33.0%
31.8%
30%
31%
31%
32%
32%
33%
33%
34%
2013 2014 2015 2016 2017 2018 2019
Revised methodology As originally reported
Reinsurance Market Report – Full Year 2019
April 2020 23
Investment performance Overall investment yield boosted by gains (both realised and unrealised)
Chart 20: Investment yield for the SUBSET(19)
A number of US / Bermuda companies in particular recorded very high yields
Chart 21: Investment yield for the SUBSET constituents
(19) Running yield captures items such as bond coupons, equity dividends and interest income.
2.8% 2.9%
-0.1%
1.5%
-1%
0%
1%
2%
3%
4%
5%
FY 2018 FY 2019
Running yield Gains yield
0%
2%
4%
6%
8%
10%
12%
Total 2019 yield
Total 2018 yield
Reinsurance Market Report – Full Year 2019
24 April 2020
■ Similar to the picture seen at the half-year stage, investment yields in 2019 were substantially
augmented by investment gains. The running investment yield (ie bond coupons, equity
dividends, etc) held roughly stable at 2.9%, but gains added a further 1.5% to take the all-in
yield to 4.4%. Gains were a small net negative in 2018, taking that year’s all-in yield to 2.7%.
■ Given reinsurers’ strong gearing to investments, these gains had a significant impact on RoE.
As mentioned in the RoE section above, investment gains accounted for more than half of the
SUBSET’s RoE in 2019.
■ The US and Bermudan reinsurers in particular recorded high total investment yields (ie
running plus gains). As mentioned above, this is attributable to a difference between US
GAAP and IFRS accounting whereby, under US GAAP, unrealised gains on equities flow
through the P&L.
■ In addition to the yields shown here and their impact on RoEs and net earnings, appreciation
in investments also boosted reinsurers’ capital via growth in unrealised gains. For the INDEX
companies, as shown in the capital waterfall chart on page 7, this impact was actually greater
than the support from net income.
Reinsurance Market Report – Full Year 2019
April 2020 25
Appendix 1 Methodology
In our HY 2019 report we broadened our definition of capital to include subordinated debt and minority
interests. We also introduced the rules below to choose the constituents of our capital calculation for
the traditional reinsurance market. As per Chart 1, these components are the INDEX, Major regional
and local reinsurers, and pro-rated portion of capital within major groups.
We review and adjust our constituents annually based on year-end data.
The constituents of these components within this report have been selected by applying the rules
below to year-end 2019 disclosures. We also restate the prior year capital position. The impact on
the previous year’s capital position from these constituent changes is the USD 20 billion ‘FY 2019
change in constituents’ shown in Chart 1.
INDEX
Capital at least USD 1B or total group NWP at least USD 1B, and reinsurance NWP at least 10% of
group NWP.
Major regional and local reinsurers(20)
Capital at least USD 250M or total group NWP at least USD 250M, and reinsurance NWP at least
10% of group NWP.
Pro rata of composites(21)
In the case of large groups whose reinsurance NWP is less than 10% of group NWP, we take a pro-
rated portion of capital which must be at least USD 250M.
Segment versus group data for the SUBSET
In our combined ratio analysis, we use P&C reinsurance segment combined ratios for those SUBSET
reinsurers which provide the disclosure. Otherwise, we use group combined ratios. In calculating the
SUBSET averages we weight these combined ratios according to the appropriate segment or group
net earned premium. In the section on premium volumes we show the growth rate in this ‘relevant
NEP’. In Appendix 2, premium income is on a written basis and relates to the entire group.
(20) Applies to constituents which don’t qualify for the INDEX.
(21) Applies to constituents which don’t qualify for the INDEX or Major regional and local reinsurers.
Reinsurance Market Report – Full Year 2019
26 April 2020
Appendix 2 Appendi x 2
NB
: S
ha
de
d r
ow
s in
th
e a
bo
ve
su
mm
ary
de
no
te S
UB
SE
T g
rou
ps
App
en
dix
2
FY
2019 r
esu
lts
su
mm
ary
fo
r th
e W
illis R
ein
su
ran
ce In
dex
FY
2017
FY
2018
FY
2019
∆ FY
FY
2017
FY
2018
FY
2019
∆ FY
FY
2017
FY
2018
FY
2019
∆ FY
FY
2017
FY
2018
FY
2019
∆ FY
Alle
ghany
(1)
8,6
21
7,8
62
8,9
81
14.2
%4,9
66
5,0
48
5,7
52
13.9
%90
40
858
2069.5
%106.9
%105.4
%100.9
%-4
.5%
Arc
h C
apital
(1)
10,0
40
10,2
31
12,2
60
19.8
%4,9
61
5,3
47
6,0
39
12.9
%567
714
1,5
95
123.5
%99.9
%94.5
%94.9
%0.4
%
AR
GO
2,0
76
2,0
04
2,0
39
1.7
%1,6
54
1,7
66
1,7
54
-0.6
%50
64
-8-1
13.2
%107.2
%97.9
%109.1
%11.2
%
Aspen
(1)
2,9
29
2,6
56
2,7
26
2.6
%2,2
13
2,0
82
2,4
28
16.6
%-2
68
-147
-242
64.6
%125.1
%104.0
%103.1
%-0
.9%
Axis
Capital
(1)
5,3
41
5,0
30
5,9
64
18.6
%4,0
27
4,6
59
4,4
90
-3.6
%-3
69
43
323
651.9
%107.1
%98.4
%101.2
%2.8
%
CC
R,
Fra
nce
(2)
2,9
06
2,9
03
2,8
46
-2.0
%1,4
52
1,6
18
1,5
35
-5.1
%51
156
148
-5.1
%93.1
%95.1
%95.1
%0.0
%
Chin
a R
e11,5
83
12,6
87
13,9
28
9.8
%14,9
34
17,2
92
19,5
13
12.8
%778
564
876
55.3
%104.0
%99.6
%101.3
%1.7
%
Conve
x(2
)0
01,8
00
00
00
00
DE
VK
Re
(2)
1,9
65
2,3
35
2,2
89
-2.0
%2,2
96
2,5
54
2,4
23
-5.1
%0
46
44
-5.1
%97.3
%94.9
%94.9
%0.0
%
Eve
rest
Re
8,6
06
8,1
40
9,3
70
15.1
%6,2
45
7,4
14
7,8
24
5.5
%469
104
1,0
09
874.8
%103.5
%108.8
%95.5
%-1
3.3
%
Fairfa
x18,6
48
17,5
88
18,0
88
2.8
%9,9
84
12,4
31
13,8
36
11.3
%1,7
41
376
2,0
04
433.0
%106.6
%97.3
%96.9
%-0
.4%
Fid
elis
(2)
1,3
05
1,2
08
1,2
08
0.0
%409
492
492
0.0
%31
79
79
0.0
%85.9
%80.6
%80.6
%0.0
%
Genera
l R
e(5
)11,3
93
10,5
50
12,1
04
14.7
%886
1,3
46
1,7
16
27.5
%301
508
440
-13.5
%122.9
%110.2
%103.7
%-6
.5%
GIC
India
(3)
8,0
38
7,7
64
7,2
71
-6.3
%5,8
38
5,5
77
5,5
18
-1.1
%502
318
315
-1.1
%106.3
%105.9
%105.9
%0.0
%
Gre
at
West
Life
co
21,1
42
20,1
52
19,7
70
-1.9
%26,1
14
27,3
55
18,4
69
-32.5
%1,7
55
2,3
87
1,8
78
-21.3
%
Ham
ilton R
e(2
)1,5
73
1,7
59
1,7
59
0.0
%346
378
378
0.0
%20
246
246
0.0
%135.8
%120.8
%120.8
%0.0
%
Hannove
r R
e(1
)12,9
42
12,6
35
15,2
50
20.7
%18,1
47
20,5
26
22,7
75
11.0
%1,0
81
1,2
50
1,4
37
15.0
%99.8
%96.5
%98.2
%1.7
%
IRB
Bra
zil
1,0
81
1,0
33
1,1
55
11.7
%1,2
69
1,3
93
1,5
94
14.4
%290
334
447
34.0
%86.3
%83.2
%80.0
%-3
.2%
Kore
an R
e2,0
25
2,0
10
2,1
32
6.1
%4,4
43
4,8
34
4,7
43
-1.9
%118
94
164
75.3
%98.3
%100.5
%100.0
%-0
.5%
Lancashire
1,3
04
1,2
62
1,3
88
10.0
%398
418
425
1.7
%-7
138
118
215.2
%124.9
%92.2
%80.9
%-1
1.3
%
MA
PF
RE
13,3
65
11,8
14
12,5
99
6.6
%21,8
93
22,6
09
21,1
64
-6.4
%790
624
1,0
69
71.5
%98.1
%97.6
%97.6
%0.0
%
Mark
el
(1)
9,5
02
9,1
00
11,0
78
21.7
%4,4
18
4,7
88
5,4
12
13.0
%395
-128
1,7
90
-1496.8
%132.0
%113.0
%104.0
%-9
.0%
Mill
i R
e545
434
489
12.8
%1,1
62
1,0
29
1,0
52
2.3
%75
57
55
-5.1
%107.0
%124.0
%116.0
%-8
.0%
Munic
h R
e(1
)37,2
10
34,5
65
38,6
21
11.7
%53,6
15
55,1
07
57,6
01
4.5
%423
2,7
25
3,0
49
11.9
%114.1
%99.4
%101.0
%1.6
%
National In
dem
nity
(5)
128,5
63
122,4
71
167,7
18
36.9
%24,0
31
27,9
56
26,9
85
-3.5
%2,0
80
10,1
39
9,1
98
-9.3
%103.8
%97.8
%98.6
%0.8
%
Pacifi
c L
ifeC
orp
(4)
13,7
04
13,0
72
16,0
55
22.8
%5,0
37
5,7
42
7,0
35
22.5
%1,3
65
913
725
-20.6
%
Part
ner
Re
6,8
16
6,5
88
7,3
40
11.4
%5,1
20
5,8
03
6,9
09
19.1
%264
-86
937
-1189.3
%99.3
%101.9
%100.3
%-1
.6%
QIC
2,7
17
2,6
33
2,8
06
6.6
%2,6
08
2,9
69
3,0
48
2.7
%114
177
179
0.8
%105.8
%101.3
%103.3
%2.0
%
R&
V V
ers
icheru
ng
(2)(
5)
2,5
81
2,4
61
2,4
12
-2.0
%3,1
16
3,2
61
3,0
94
-5.1
%159
114
108
-5.1
%104.6
%99.4
%99.4
%0.0
%
Renais
sance R
e4,3
91
5,0
45
5,9
71
18.4
%1,8
71
2,1
32
3,3
81
58.6
%-2
22
227
749
229.3
%137.9
%87.6
%92.3
%4.7
%
RG
A(4
)10,6
88
9,5
69
12,7
20
32.9
%9,8
41
10,5
44
11,2
97
7.1
%1,8
22
716
870
21.5
%
SC
OR
10,1
30
9,2
80
9,8
56
6.2
%15,1
81
16,2
57
16,1
68
-0.6
%322
380
472
24.3
%103.7
%99.4
%99.0
%-0
.4%
Siriu
s2,2
48
2,0
10
1,9
34
-3.8
%1,0
90
1,3
57
1,5
03
10.7
%-1
50
-18
-47
161.3
%107.6
%103.1
%110.8
%7.7
%
Sw
iss R
e(1
)39,2
96
33,3
68
38,9
48
16.7
%32,3
16
34,0
42
39,6
49
16.5
%331
421
727
72.7
%111.5
%104.0
%107.4
%3.4
%
Third P
oin
t R
e1,6
61
1,2
05
1,4
14
17.4
%639
558
623
11.5
%278
-318
201
-163.2
%107.7
%106.8
%103.2
%-3
.6%
Toa R
e(3
)1,8
88
1,6
24
1,7
14
5.5
%2,1
47
2,2
39
2,2
84
2.0
%83
-64
-66
2.0
%96.5
%103.9
%103.9
%0.0
%
Valid
us R
e(2
)4,2
49
3,2
59
3,2
59
0.0
%2,0
45
1,7
01
1,7
01
0.0
%13
-104
-104
0.0
%104.2
%115.9
%115.9
%0.0
%
WR
Berk
ley
(1)
6,1
79
6,3
87
7,3
17
14.6
%6,2
61
6,4
33
6,8
63
6.7
%549
641
682
6.4
%117.6
%106.4
%96.5
%-9
.9%
XL
(1)(
2)
13,8
38
11,6
36
11,6
36
0.0
%10,6
68
11,0
80
11,0
80
0.0
%-3
10
-866
-866
0.0
%102.9
%108.6
%108.6
%0.0
%
Index a
ggre
gate
(6)(
7)
443,0
88
416,3
29
496,2
14
19.2
%313,6
37
338,1
35
348,5
50
3.1
%15,5
15
22,7
60
31,4
58
38.2
%105.7
%100.0
%100.3
%0.3
%
Subset
aggre
gate
(6)(
7)
187,9
39
174,9
56
198,5
44
13.5
%173,1
05
186,1
68
203,4
31
9.3
%5,4
80
6,3
25
15,6
55
147.5
%108.9
%100.5
%100.6
%0.1
%
Gro
up
20
19
re
su
lts
ta
ble
(U
SD
mill
ion
s)
Co
nso
lid
ate
d d
ata
un
less
oth
erw
ise
sta
ted
No
tes
To
tal
ca
pit
al
Ne
t w
ritt
en
pre
miu
mN
et
inco
me
Co
mb
ine
d r
ati
o
Reinsurance Market Report – Full Year 2019
April 2020 27
(1) Combined ratios are in respect of the P&C Reinsurance segment only.
(2) Due to lack of disclosure at the time of the report, total capital shown for FY 2019 is based on FY 2018 disclosure.
(3) Companies which have a March 31 financial year-end. Data for the year ended March 31 2019 is included in the column headed FY
2018 (and similar for prior years), and FY 2019 data is also based on year-end March 31 2019 disclosure.
(4) Figures for net premiums are net earned premiums, not net written premiums.
(5) Numbers are sourced from unconsolidated financial statements.
(6) Total of numbers reported, converted to USD at exchange rates prevailing at end of reporting period for total capital figures. For net
income and NWP figures, we use average exchange rates over the reporting period.
(7) Pre-FY 2019 aggregates shown in this appendix will not necessarily match the aggregates shown in body of report. In the body, prior
year figures have generally not been restated for changes in constituents. The figures here have been restated.
The information compiled in this report by Willis Towers Watson is compiled from third party sources which we consider
to be reliable. However we do not guarantee and are not responsible for its accuracy or completeness and no warranty
or representation of accuracy or completeness is given.
�K��5�����U�������U��W�5�SRUW
7���:L��L��5��5�LQ���DQF��0D�N�W�5�SR�W�L��D��D�I���D����S�E�LFDWLRQ�S�R�L�LQ��DQ�D�����DW��DQD���L��RI�W����L���DQ��S��IR��DQF��RI�W�����RED��
reinsurance�market.�The�report�is�based�on�the�Willis�Reinsurance�Index�group�of�reinsurance�companies�from�across�the�globe.
�������5�
Willis�Re�combines�global�expertise�with�on-the-ground�presence�and�local�understanding.�Our�integrated�teams�reveal�hidden�value�in�the�critical�
LQW����FWLRQ��E�W���Q��L�N��D���W��DQ��L��D��
���W�����LQ���DQF��D��L�R���D���RI�:L��L��7R�����:DW�RQ��:L��L��5��FDQ�DFF����DQ��Q��RWLDW���LW���R����L����D�N�W��DQ��ERR�W��R���E��LQ����
S��IR��DQF��E���DNLQ��E�WW�����LQ���DQF����FL�LRQ���7R��W���������Q�RFN��D����
Find�out�more�at�willisre.com�or�contact�your�local�Willis�Re�o�ce.�
:L��L��/L�LW����5��L�W�����Q��E������������Q��DQ��DQ��:D����
5��L�W�����D�����������/L���6W���W��/RQ�RQ�����0���4���
��/�R�������RN������W�R�L����DQ�������DW���E��W����LQDQFLD���RQ��FW���W�R�LW���
IR��LW����Q��D��LQ���DQF�����LDWLRQ�DFWL�LWL���RQ���
�
:7:�����������
����������������������
k��RS��L��W������:L��L��/L�LW�����:L��L��5��,QF�������L��W������������1R�SD�W�RI�W�L��S�E�LFDWLRQ��D��E����S�R��F�����L����LQDW�����L�W�LE�W�����WR����LQ�D���W�L��D�����W����W�DQ��LWW���R��RW����L���W�DQ�I������
LQ�DQ��IR���R��E��DQ����DQ������W�������FW�RQLF����F�DQLFD���S�RWRFRS�LQ�����FR��LQ���R��RW����L�����LW�R�W�W���S���L��LRQ�RI�:L��L��/L�LW�����:L��L��5��,QF��6R���LQIR��DWLRQ�FRQWDLQ���LQ�W�L���RF���QW��D��
E��FR�SL����I�R��W�L���SD�W���R��F���DQ������R�QRW���D�DQW���DQ��D���QRW����SRQ�LE���IR��W���DFF��DF��RI���F���7�L���RF���QW�L��IR����Q��D��LQIR��DWLRQ�RQ���DQ��L��QRW�LQW�Q����WR�E�����L����SRQ����Q��DFWLRQ�
based�on�or�in�connection�with�anything�contained�herein�should�be�taken�only�after�obtaining�speci�c�advice�from�independent�professional�advisors�of�your�choice.�The�views�expressed�in�this�document�
are�not�necessarily�those�of�Willis�Limited�/�Willis�Re�Inc.,�its�parent�companies,�sister�companies,�subsidiaries�or�a�liates,�Willis�Towers�Watson�PLC�and�all�member�companies�thereof�(hereinafter�“Willis�
Towers�Watson”).��Willis�Towers�Watson�is�not�responsible�for�the�accuracy�or�completeness�of�the�contents�herein�and�expressly�disclaims�any�responsibility�or�liability�for�the�reader’s�application�of�any�of�
W���FRQW�QW������LQ�WR�DQ��DQD���L��R��RW�����DWW����R��IR��DQ�������W��R��FRQF���LRQ��ED�����SRQ��D�L�LQ��I�R��R��LQ�FRQQ�FWLRQ��LW��W���FRQW�QW������LQ��QR���R�W���FRQW�QW������LQ���D�DQW����DQ����R����QRW�E��
FRQ�W�����WR���D�DQW����DQ��SD�WLF��D�������W�R��R�WFR�����:L��L��7R�����:DW�RQ�DFF�SW��QR����SRQ�LEL�LW��IR��W���FRQW�QW�R��T�D�LW��RI�DQ��W�L���SD�W����E�LW���WR���LF�������I���
The�contents�herein�are�provided�for�informational�purposes�only�and�do�not�constitute�and�should�not�be�construed�as�professional�advice.�Any�and�all�examples�used�herein�are�for�illustrative�purposes�
only,�are�purely�hypothetical�in�nature,�and�o�ered�merely�to�describe�concepts�or�ideas.�They�are�not�o�ered�as�solutions�to�produce�speci�c�results�and�are�not�to�be�relied�upon.�The�reader�is�cautioned�to�
FRQ���W�LQ��S�Q��QW�S�RI���LRQD��D��L�R���RI��L������F�RLF��DQ��IR����DW��LQ��S�Q��QW�FRQF���LRQ��DQ��RSLQLRQ�����D��LQ��W�����EM�FW��DWW����L�F����������LQ��:L��L��7R�����:DW�RQ�L��QRW����SRQ�LE���IR��
the�accuracy�or�completeness�of�the�contents�herein�and�expressly�disclaims�any�responsibility�or�liability�for�the�reader’s�application�of�any�of�the�contents�herein�to�any�analysis�or�other�matter,�nor�do�the�
FRQW�QW������LQ���D�DQW����DQ����R����QRW�E��FRQ�W�����WR���D�DQW����DQ��SD�WLF��D�������W�R��R�WFR���
���W��W���
�������������
��U��U�W�����������W�������
���/L���6W���W
/RQ�RQ�����0���4
D�+44�(0)�203�124�7080
M�+44�(0)�778�766�9001
�QQL��5RE��W��:L��L�7R����:DW�RQ�FR�
����W������������U����W���
Willis�Towers�Watson�(NASDAQ:�WLTW)�is�a�leading�global�advisory,�broking�and�solutions�
FR�SDQ��W�DW����S��F�L�QW��D�R�Q��W����R����W��Q��L�N�LQWR�D�SDW��IR����R�W���:LW���RRW���DWLQ��
WR�������:L��L��7R�����:DW�RQ��D�����������S�R���������LQ���R���W�DQ�����FR�QW�L���DQ��
markets.�We�design�and�deliver�solutions�that�manage�risk,�optimise�bene�ts,�cultivate�talent,�
and�expand�the�power�of�capital�to�protect�and�strengthen�institutions�and�individuals.�Our�
�QLT���S���S�FWL���D��R������WR�����W���F�LWLFD��LQW����FWLRQ��E�W���Q�WD��QW��D���W����W���
��QD�LF�IR����D�W�DW���L����E��LQ����S��IR��DQF���7R��W���������Q�RFN�SRW�QWLD���/�D�Q�
�R���DW��L��L�WR�����DW�RQ�FR���