Financial research and credit rating agency S&P Global Ratings said the world’s largest multi-line insurer continued to deliver strong financial performance in 2025, supported by disciplined underwriting, solid investment returns and a resilient capital position.
The company said in a new report that the 15 global multi-line insurers (GMI) it rates had a combined net profit of $84 billion for the year, compared with $68 billion in 2024.
Reported earnings rose 23% year-over-year, according to S&P, but potential growth was lower after excluding currency fluctuations and special items. The company said earnings rose 9% on a comparable basis, which was at the upper end of expectations for the industry.
S&P said earnings were supported in part by a weaker U.S. dollar and some one-time transactions. AXA made a $2.5 billion gain from the sale of its asset management business to BNP Paribas, while Prudential made a $1.4 billion gain from the sale of part of its stake in ICICI Prudential Asset Management Company Limited. By comparison, AIG’s sale of Corebridge in 2024 resulted in a one-time loss of $3.6 billion.
The company defines GMI as an insurance company that is broadly diversified across business lines or international markets. These include groups such as Allianz, AXA, Zurich, AIG, Chubb, Tokio Marine, QBE, Prudential Financial, MetLife, Sun Life, Manulife, AIA, Prudential, Mapfre and Talanx.
S&P said the industry continues to benefit from pricing discipline, selective underwriting, conservative investment strategies and the use of reinsurance to manage risk exposures. The company added that its diversified business model and strong brand position remain key advantages for large international insurers.
The report also highlighted the growing contribution of asset management and fee-based businesses to earnings. S&P said about a fifth of Allianz’s operating profit came from asset management activities, while Zurich generated more than a quarter of its operating profit from farmers insurance management services. Sun Life Financial and Manulife Financial also generate more than 25% of their income from investment management businesses.
Insurers continue to improve operational efficiency through internal risk management practices, product development and broader use of technology, S&P noted. The company noted that generative AI is increasingly used in underwriting, claims processing, policy administration and fraud detection processes.
The company said the sector’s financial strength was reflected in its ratings profile, with nearly half of insurers rated “AA”. Over the past year, S&P Global Ratings has upgraded the ratings of AXA, Prudential PLC, AIA, AIG and QBE, while changing the outlooks of Tokio Marine and Mapfre to positive.
Looking ahead, S&P expects earnings growth to slow in 2026 and 2027. The company said underwriting conditions and financial market conditions were unlikely to improve significantly and forecast industry earnings to remain broadly stable or grow only slightly in 2026.
S&P also warned that uncertainty over the conflict in the Middle East continues to pose risks to global markets, supply chains, commodity prices and economic activity. The company said these factors were not fully reflected in its base-case forecasts.
Risks identified in 2026 include geopolitical tensions, market volatility, pressure on investment returns, increased exposure to private assets, rising reinsurance costs and regulatory challenges. S&P said prolonged inflation and weak economic growth could increase claims costs and weigh on consumer spending.
In property and casualty insurance, the company said underwriting results remained strong in 2025 due to favorable pricing conditions, lower catastrophe losses and disciplined risk selection. Combined ratios average around 92%, with insurers such as Allianz, Zurich, Tokio Marine, AIG and QBE all benefiting from improved catastrophe performance.
S&P said personal lines showed stronger improvement than commercial lines, mainly because price increases were more pronounced in personal lines. The company added that commercial insurance margins appear to have stabilized after several years of significant rate hikes.
Life insurance companies also recorded higher earnings in 2025, driven by strong demand for retirement and savings products, higher investment yields and improved business mix, the report said. Insurers in the Asia-Pacific region have experienced particularly strong growth, S&P noted, driven by changing demographics, rising insurance awareness and growing demand for long-term financial protection products.
While S&P expects life insurance earnings to remain resilient in 2026, it said profitability could be affected by weakness in the stock market, geopolitical uncertainty and potential credit losses related to private debt investments.
The company also said the insurer continues to prioritize shareholder returns through dividends and share buyback programs. Average dividend payout ratios have remained between 45% and 50%, while many insurers have announced further buybacks, supported by strong capital positions and manageable leverage levels.
Marc-Philippe Juilliard, credit analyst at S&P Global Ratings, commented: “Strong earnings translate into positive rating action. GMI has demonstrated strong capital strength, resulting in a sustained high average dividend payout ratio of around 45% and a substantial share repurchase program.”
S&P Global Ratings said it does not expect large-scale M&A activity to accelerate significantly in 2026, although specific acquisitions and restructuring activity may continue across the industry.
