International credit rating agency and financial research provider Moody’s Investors Service has highlighted that eight leading Nordic property and casualty (P&C) insurers reported excellent underwriting performance in 2025.
The industry’s average combined ratio, which represents claims and operating costs as a proportion of insurance revenue, fell to a record low of 84.8% from 89.5% in 2024. The improvement reflects good claims experience for most insurers, generally mild weather conditions and a reduction in large loss events.
Strong revenue growth, driven primarily by price increases aimed at offsetting rising claims costs, also contributed to the positive results. Moody’s expects underwriting results to remain solid in 2026, although slower pricing momentum and a return to more typical natural catastrophe claims could dampen premium growth and slightly weaken the combined ratio.
Enhanced underwriting results improved overall profitability and were further supported by healthy investment returns. Capitalization for the major Nordic property and casualty insurers remains strong, improving slightly from 2024. Publicly traded insurance companies return significant amounts of capital to shareholders through share buybacks and special dividends, while maintaining strong solvency. Moody’s assessment of the group reinforces its stable outlook for the Nordic property and casualty insurance market.
All eight major insurers with market shares of more than 70% saw their combined ratios decline year-on-year, with six of them recording combined ratio levels below 85%, benefiting from particularly favorable underwriting conditions. Some non-listed insurance companies that had previously lagged as price adjustments slowed also recovered in 2025, but the degree of improvement was uneven.
Compared with 2024, the average loss ratio dropped to 65.4% due to fewer large claims and a lighter burden of natural disaster events. Reserve releases continued to support performance, although some insurers strengthened line-specific reserves, while others added additional caution due to strong profitability.
Operating expenses were broadly stable at 19.4% of revenue. Strong revenue growth and disciplined cost management offset growing investments in technology and operational efficiencies, although some companies faced higher expenses related to integration or digital initiatives. A combination of improved underwriting and supportive financial market conditions increased pretax profits by approximately 24% compared to 2024.
Revenue growth will average 7.9% in 2025, down slightly from 8.9% in 2024, driven by price increases and strong customer retention. Norway led premium growth, while other Nordic markets recorded more modest growth. Private lines performed better than commercial lines, which faced stiff competition and continued focus on profitability. With claims inflation and frequency stabilizing, the scope for further price increases is expected to narrow in 2026, with growth increasingly reliant on disciplined exposure expansion rather than aggressive pricing.
Capital adequacy remains strong, with Solvency II ratios between 174% and 280%, slightly higher than in 2024. Strong capital generation and favorable market conditions underpin solid solvency positions, with listed insurers continuing to return earnings to shareholders while maintaining strong financial fundamentals. Moody’s expects the leading Nordic property and casualty insurer to maintain resilient capital levels and maintain a prudent underwriting strategy in the coming year.
