The world’s leading insurance companies experienced significant growth in the first quarter of 2025, with the combined market capitalisation of the top 25 insurers rising 17% year-on-year to reach $3.5 trillion, according to GlobalData.
Several factors contributed to this robust performance, including higher premium pricing driven by inflation, improved investment returns due to elevated interest rates, and a reduction in large-scale catastrophic events.
PICC Property and Casualty Leads the Way
China’s PICC Property and Casualty topped the list of gainers with a remarkable 40.5% increase in market value. The company’s impressive results were largely driven by strong 2024 performance, particularly in its motor and non-motor vehicle insurance segments. Additionally, PICC benefitted from enhanced operational efficiency through technology-driven cost control measures. The insurer also commanded a 38.8% share of China’s household motor vehicle insurance market.
European and American Insurers Show Mixed Results
Italian insurer Assicurazioni Generali saw its valuation surge 39.5%, reaching $55.1 billion by the end of March 2025, reflecting strong market performance.
In contrast, US-based Berkshire Hathaway posted a 25.7% increase in market value, largely driven by robust returns from its energy and infrastructure investments.
However, not all insurers fared as well. Elevance Health and The Cigna Group reported declines of 18.6% and 17.0%, respectively, due to factors such as reduced enrollment, higher medical loss ratios, and increased regulatory scrutiny. Meanwhile, Life Insurance Corporation of India saw a 15.4% drop, hindered by weak policy growth, disappointing equity market performance in India, and a lack of foreign investment.
Outlook for Q2 2025
Looking ahead, GlobalData’s Murthy Grandhi highlighted that a potential pause in rate hikes by the US Federal Reserve could stabilize yields, benefiting life insurers’ investment portfolios. However, ongoing trade tensions between the US and China may negatively impact global trade insurance demand.
In Europe and Asia, inflation and monetary tightening may squeeze insurers’ margins, although efforts to reprice premiums could help support growth. Additionally, the demand for specialty insurance lines—especially those covering climate and cyber risks—is expected to continue rising.
The outlook for the industry remains mixed, with insurers navigating both positive market factors and ongoing challenges.
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