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Aon says P&C insurers can use strong returns to build durable advantage
Aon’s analysis of 120 global property and casualty insurers found return on average equity rose to 16.8% in 2025, with a combined operating ratio of 91.1%.
Aon says global property and casualty insurers are entering the next phase of the market cycle from a position of strength, giving them an opportunity to turn recent profitability gains into a longer term competitive advantage.
In its third annual review of 120 global P&C insurers, Aon said return on average equity reached 16.8% in 2025, the highest level in its tracked cohort since 2009. The firm tied the result to stronger underwriting income, favorable market conditions, and a relatively benign catastrophe year.
Aon also highlighted signs of a changing environment as insurers navigate profitability and growth. It said the share of carriers increasing RoAE year on year fell from 74% to 60%, and premium growth slowed for a fourth consecutive year to 5.2%, below the decade average and less than half the 2021 pace.
On performance, Aon reported that the combined operating ratio improved to 91.1%, the lowest level of the decade, while dispersion widened across the sector. The firm pointed to steps insurers can take now, including investing in underwriting, portfolio analytics, reinsurance strategy, digital capabilities, and talent.