Insurers Show Strongest Financial Performance In A Decade

Publicly traded insurance companies showed strong financial performance in 2024 compared to the prior year, according to an analysis by Compensation Advisory Partners.

CAP released its annual research on executive compensation and financial performance across two industry segments, including 19 of the largest publicly traded property/casualty and life/health insurers.

Among the key takeaways from the analysis:

• In 2024, insurance companies had their best year with respect to total shareholder return since 2013. This momentum has continued in 2025, where year to date, insurance companies are outperforming the S&P 500.
• The median increase to CEO total target compensation for 2024 was 6.1%, largely driven by increases to target long-term incentives. Median increase for P/C CEOs was slightly higher than L/H CEOs (6.8% vs. 4.7%).
• Top-line growth in 2024 was in the double digits and at its highest rate in more than a decade, while profitability and returns continued to grow year over year. P/C insurers had overall stronger performance results than did L/H companies.

 Strong overall performance in 2024

Top line growth in the insurance industry was particularly strong in 2024, with median revenue growth of +10.1% for all insurers in CAP’s. This was the largest increase over the last 10 years.

Revenues for L/H insurers increased +6.1% at median in 2024, the first year-over year increase since 2019. Revenue and premium growth for P/C insurers in 2024 were up +12.3% and +9.0%, respectively, which was in line with reported growth in 2023.

Net Investment Income continued to be very strong in 2024, with the full sample of companies up +11.4% year-over-year at median. Growth was slightly below 2023 (+12.1%), but above the prior five-year average (+3.1%). P/C insurers (+21.5%) outperformed L/H insurers (+6.9%) with respect to 2024 net investment income growth.

Both P/C and L/H insurers generally reported operating income and operating return on equity growth in 2024. However, profitable growth for P/C insurers was significantly stronger than for L/H insurers in the study.

“A lot of revenue growth has come from pricing and some of that growth has come from other internal, organic growth opportunities,” said Roman Beleuta, CAP principal. “We also saw strong growth in investment income, which is driven by portfolio management. Also, rising interest rates definitely contributed to some of that growth as well.”

CEO pay for performance increased for 2024

Annual incentives, or bonuses, for insurance company CEOs increased in 2024, and generally aligned with financial performance.

In 2024, 6 of 19 companies funded annual incentives at or above 150% of target, more than any other year since 2021 (7 companies).

P/C companies funded annual incentives higher than L/H companies.

CEO incentives increased in 2024 as the industry had its best year since 2021, Beleuta said.

“Seeing this level of strong performance was encouraging, and payouts follow that performance as well.”

Modest increases in insurers' CEO target pay in 2024

Median CEO target total direct compensation for 2024 increased modestly for most companies in the analysis. The median increase in for all CEOs in the sample was 5.5% in 2024, which compares with 5.8% in 2023 and 5.6% in 2022.

Brighter profitability forecasts for insurers

Despite elevated concerns in January about the California wildfires, catastrophe losses have come in lower than initially expected, causing the annual outlook to brighten from first quarter and analysts to raise their profitability forecasts, the CAP report said. L/H companies are generally viewed more neutrally on the street as they are more sensitive to market volatility through their asset holdings and increased pressure on fees and spreads.

CAP’s insurance sample

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