Europe's largest insurance groups are growing again, just not at the pace that turned heads in 2024. The continent's top 20 posted combined premium income of €922.8 billion in 2025, up 4.57%, as growth more than halved from the 10.28% recorded the previous year, according to a Mapfre Economics report.
The 2024 spike was driven by non-recurring valuation effects linked to interest rate movements in the life segment. The life and non-life segments each expanded at approximately 4.5% in 2025, the most balanced rate of the four-year period from 2022 to 2025.
Life premiums reached €541.9 billion in 2025, up from €463.2 billion in 2022. Non-life premiums came in at €380.9 billion, up from €319.5 billion over the same period.
France held the largest share of combined premium volume at 26.58% in 2025, up from 23.91% in 2022. The United Kingdom held second place at 15.19% but continued a downward trend the report attributes to Brexit restructuring and divestments in the life line. Italy and Germany recorded shares of 12.49% and 11.37%, respectively.
The share of premiums from markets outside each group's home country and five declared foreign markets stood at 13.57% in 2025, just below the 13.69% recorded in 2024. Non-life showed greater geographic spread at 23.95% while life remained more concentrated in home markets at 6.28%.
The United States was the primary destination for non-domestic business at €65.7 billion, or 15.17% of all premiums generated outside home markets. Allianz and Talanx underpin that position through large non-life platforms. Italy led as the top recipient of foreign life business at 17.55% of non-domestic life premiums.
Asian markets continued to attract long-term life commitments from groups such as Allianz and AXA. Japan accounted for €7.7 billion, China for €6.6 billion, Hong Kong for €4.7 billion and Taiwan for €4.3 billion.
The aggregate solvency capital requirement (SCR) ratio across the sample rose to 217.7% in 2025, from 208.4% in 2024. The improvement was broad-based, particularly among groups with larger life exposure. It was supported by a steepening of the risk-free yield curve and a normalisation of sovereign risk spreads that had weighed on several French groups the previous year.
Aema recorded the largest single-year gain at 41.0 percentage points (pp), to reach 212.1%. VIG (Vienna Insurance Group) climbed 34.8pp to 295.6% and Groupama improved 32.5pp to 273.7%.
Poste Vita remained the highest-rated group at 302.6%, despite a 20.0pp decline. Legal & General dropped 28.9pp to 202.9% and Aviva fell 17.3pp to 167.0%, partly reflecting the acquisition of Direct Line.
Of the 20 groups, 11 used some form of internal model to calculate the SCR and nine applied the standard formula. At aggregate level, 80.6% of eligible own funds consisted of highest-quality Tier 1 capital.
Long-term guarantee (LTG) measures remained in widespread use. The volatility adjustment was applied by all but Legal & General, and three groups used the matching adjustment: Aviva, Legal & General, and Mapfre. Six applied the transitional measure on technical provisions.
Without LTG adjustments, several groups would have reported materially lower ratios. Legal & General's would have stood at 31.5%, against its reported 202.9%, while Aviva's would have been 68.7%, against a reported 167.0%.
Fitch has estimated that incoming Solvency II reforms will deliver an average capital benefit of 5% to 7% of insurers' solvency capital, with life insurers expected to gain more than non-life carriers.
Ricardo García, director of analysis, sector research and regulation at Mapfre Economics, said the results "show a European insurance system with a solid and resilient capital position, despite the uncertain economic environment." The Solvency II framework is under review, with reforms due on January 29, 2027 that include adjustments to LTG measures expected to free up additional capital for life insurers.
