MAPFRE Economics, the research arm of Spain-based global insurance group MAPFRE, reported in its latest assessment of the European insurance industry that the region’s 20 largest insurers will continue to increase premium income during 2025, albeit at a slower pace than the previous year.
The research also shows that international expansion has leveled off, while insurers have strengthened their capital positions as market conditions have become more favorable.
MAPFRE Economics found that the combined premiums of Europe’s largest insurance groups reached 922.8 billion euros in 2025, an increase of 4.57% over the previous year. The company said the industry has maintained steady growth despite continued economic uncertainty, underscoring the resilience of the insurance market.
The company said the increase in premium income was driven by stronger investment performance driven by the current interest rate environment, as well as broadly similar growth in its life and non-life insurance businesses. Each segment recorded an expansion of around 4.5%, according to a MAPFRE Economics review of public financial information from leading European insurance groups.
Although premium volume continues to increase, MAPFRE Economics noted that the growth rate has slowed down from 2024, when premiums increased by 10.28%. The company attributed the previous year’s strong performance largely to the life insurance market, which benefited from higher interest rates.
Research shows that insurance companies’ international footprints have reached a period of relative stability after several years of gradual expansion. In 2025, business generated outside the company’s domestic market and its five largest overseas markets accounted for 13.57% of total premiums, which was little changed from 13.69% in the same period last year.
International diversification in non-life insurance remains significantly stronger, with these wider markets accounting for 23.95% of premiums, according to MAPFRE Economics. In contrast, life insurance business remains largely concentrated in the insurer’s domestic market, with only 6.28% of premiums coming from these additional regions.
The company said the United States remains a key market for international growth, accounting for more than 15% of insurers’ home-country foreign premium income, particularly in the non-life insurance industry. MAPFRE Economics also identified Italy as the largest overseas destination for life insurance business among Europe’s leading insurers, while highlighting Asia as an increasingly important region due to its expanding middle-class population and long-term growth prospects.
MAPFRE Economics also examines the composition of an insurer’s core business, defined as its domestic market and its five largest international markets. France accounts for 26.58% of the combined core business of major European insurance groups.
The UK remains the second largest market with a share of 15.19%, although MAPFRE Economics says this share continues to decline due to the impact of Brexit and life insurance divestment. Italy accounts for 12.49% of the core business, followed by Germany with 11.37% and Spain with 1.6%.
The firm’s analysis found that the combined solvency ratio of Europe’s 20 largest insurers rose to 217.7% at the end of 2025 from 208.4% a year ago.
MAPFRE Economics attributes the stronger solvency position to more favorable financial conditions, with changes in interest rates and risk premiums supporting higher capital levels across the industry. The company said conditions improved significantly for most insurers in the analysis, particularly those with larger life insurance operations, as their solvency is more vulnerable to changes in financial markets.
Commenting on the findings, Ricardo GarcÃa, Director of Analysis, Industry Research and Regulation at MAPFRE Economics, said the 2025 results “demonstrate that despite the uncertainty in the economic environment, the European insurance system has a solid and resilient capital position.”
