Aon study tracks $2trn in premiums to identify top growth performers

Aon has analysed $2trn of insurance premiums over the past decade to identify the companies that combined sustained growth with profitability across market cycles.

The broker’s latest Profitable Growth study examines compound annual growth rates (CAGR) and returns on average equity (RoAE) for 120 insurers and reinsurers between 2013 and 2024.

It finds that the best performers consistently focused on strategy and relevance, allowing them to generate stronger financial outcomes in both soft and hard markets.

The analysis group delivered a 14.7% RoAE in 2024, compared with an average of 8.7% over the previous decade.

Its combined operating ratio improved to 93.6 percent, the lowest since 2006.

Gross written premium rose 7.5% to $1.9trn, outpacing the 10-year CAGR of 6.4%, though this was the third successive year of slowing growth following a post-pandemic high of 10.2% in 2021.

The report underlines significant variance in profitability across property and casualty lines. For the third year running, the most globally diversified and specialised portfolios produced the lowest combined operating ratios.

Paul Campbell, global growth leader in Aon’s strategy and technology group, said relevance was key to outperforming through the cycle.

“In a market defined by volatility, insurers must embed strategic relevance into every decision to outperform through the cycle,” he said.

“We are collaborating with clients on strategies to smooth volatility in financial results, become more relevant to customers and make their firms a more attractive proposition to investors.”

Strategic shift

The new report, “Relevance Through the Market Cycle: Five Strategic Imperatives for Insurers”, builds on earlier Aon research into the traits of top-performing carriers.

It sets out five priorities for insurers to enhance competitiveness: redefining growth strategy; aligning capital with strategy; investing in data-driven decision making; understanding client and channel needs; and rethinking talent strategy for the next cycle.

Sherif Zakhary, CEO of Aon’s strategy and technology group and Inpoint, said insurers must evolve from product suppliers to “performance partners”.

He said: “This means being proactive, insightful and deeply attuned to client needs across geographies and sectors,” he said. “However, legacy operating models, rigid capital structures and siloed distribution strategies are holding some insurers back.”

He added that Aon had built its data-driven approach and talent pool to support clients in developing resilience and growth strategies.

Renewal context

The release of the report coincides with the start of Aon’s reinsurance renewal season, which runs through to the critical January 1, 2026 renewals.

Against a backdrop of moderating growth rates and increasing focus on underwriting discipline, Aon said its work with clients would be aimed at embedding the imperatives identified in the research to secure long-term outperformance.