Love Actuary: #195 – IFRS17 metrics point to a strongly performing life insurance sector in Europe

Research evidence excerpt

Love Actuary: #195 – IFRS17 metrics point to a strongly performing life insurance sector in Europe

J P M O R G A N Europe Equity Research

26 June 2026

Love Actuary

#195 – IFRS17 metrics point to a strongly performing

life insurance sector in Europe

• Life insurers have generated better margins, profit quality and stability European Insurance

AC than investors may be pricing in. IFRS17 contains a rich source of analytical Farooq Hanif

metrics to analyse sources of profit, underwriting margins and growth potential (44 207) 742-8091

for life insurers, which previously did not exist in a consistent / audited form. farooq.hanif@jpmorgan.com

This continues to be largely ignored by most companies in their reporting and Kamran M Hossain

by a significant proportion of investors. Our analysis of IFRS17 metrics since (44-20) 3493-3780

2022 suggests that the life insurance sector is generating strong underwriting kamran.hossain@jpmorgan.com

margins (low ‘life’ combined ratios), with stable CSM growth and some clear Bingdi Fan, CFA

growth stories. We continue to see attractive value in life insurers, with (44-20) 7742-5336

bingdi.fan@jpmorgan.com

Prudential (OW) a key buying opportunity, given its recent valuation

Nadia Claressa pullback, but also its high quality life profit mix, high margins and CSM growth

(44-20) 7134-7613

potential. nadia.claressa@jpmorgan.com

• Strong life underwriting margins in IFRS17. The insurance service result in J.P. Morgan Securities plc

IFRS17 is a proxy for underwriting profits before the impact of investment

Specialist Sales contact details:

results. Our computation of ‘life insurance combined ratios’ based on reported

life revenues, suggests a large proportion of the sector generates ~90% or lower Gigi Sparling - Specialist Sales -