By Carlos Pallordet

July 2 - (The Insurer) - Average CEO compensation across listed P&C (re)insurers and brokers increased by 15% to $9.0 million in 2024, according to analysis by The Insurer.

• “As reported” CEO compensation rose by 15% in 2024 (versus 17% in 2023)

• Arch CEO Nicolas Papadopoulo tops ranking with a total package of $31.8 million

• Chubb CEO Evan Greenberg ranked second with package worth $30.3 million

• HCI Group CEO Paresh Patel surges into the top 10, lifting average CEO pay among Florida-based insurers

• Global insurers’ CEO compensation averaged $6.0 million, making them the best-paid group outside US carriers

The study, which covered a group of 75 listed global (re)insurance companies, found that of the 69 CEOs who held their positions in both 2023 and 2024, 55 recorded an increase in total compensation year on year.

Arch’s Nicolas Papadopoulo was the highest-paid CEO in 2024, following a fourfold increase in total “as reported” compensation to $31.8 million.

The “as reported” amount represents the compensation as calculated and disclosed according to Securities and Exchange Commission rules, not necessarily the actual cash received or realised by the executive in that year. For example, stock and option awards are valued at the time they are granted, not when (or if) they eventually vest or are exercised. In the specific case of Arch, there is no possibility to realise any financial value from these until at least five years following the grant date.

Papadopoulo’s 2024 pay package was significantly boosted by a special restricted stock award of $9.6 million and option awards of $17.0 million, both granted in connection with Arch’s leadership transition in October 2024.

Papadopoulo, previously president and chief underwriting officer, took over as CEO from Marc Grandisson, who retired after serving in the role since 2018.

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Meanwhile, Chubb chairman and CEO Evan Greenberg slipped to second place despite a 9% year-on-year increase in his total compensation to $30.1 million, 42% of which was paid in cash.

Allstate chairman, president and CEO Tom Wilson moved into third place in 2024 from eighth place the previous year with a total package worth $26.7 million, of which 36% corresponded to cash.

In 2024, Allstate’s board granted Wilson equity awards with a grant date fair value of $16.6 million, resulting in a 2024 equity award which was above his target equity incentive award opportunity of 950% of salary (117% of target). The proxy statement said this was awarded “in recognition of his significant contributions to the company’s on-going progress on the company’s profitability and growth strategy”.

The board also approved an annual cash incentive award of $8.0 million, which was funded at 188% of target funding level.

In contrast, AIG’s Peter Zaffino and Aon’s Greg Case, both previously in the top three, fell to fifth and fourth place, respectively. Zaffino’s total pay remained unchanged in 2024, while only 18% of Case’s pay was in cash – the third-lowest proportion across our panel of CEOs.

HCI Group CEO Paresh Patel also ranked among the top 10 earners last year after his total “as reported” compensation soared to $20.2 million from $3.7 million in 2023.

The increase was primarily due to the award of 200,000 restricted shares of common stock, granted in April 2024 as part of a new five-year employment agreement. The restricted share units will vest in equal instalments over four years, contingent upon HCI’s stock price reaching $200 for 30 consecutive trading days – an 82% premium over the stock price at the time of the grant.

There were also significant increases in pay at smaller companies outside the top 10 in 2024, with "as reported" pay for both Lemonade’s Daniel Schreiber and Mercury General’s Gabriel Tirador doubling last year.

PEER GROUP DYNAMICS

Average CEO pay was up across all peer groups in 2024, with the exception of global reinsurers, which recorded a 17.8% decrease year on year.

The fall was primarily driven by changes in executive compensation at Swiss Re and Scor.

Christian Mumenthaler stepped down as group CEO of Swiss Re in June 2024, with former Corporate Solutions head Andreas Berger assuming the position. For 2024, Berger’s total disclosed compensation was 5.2 million Swiss francs ($5.7 million), reflecting his remuneration as CEO of Corporate Solutions in the first half of the year and as group CEO in the second half. By comparison, Mumenthaler received 7.6 million francs in 2023.

Scor CEO Thierry Léger's pay decreased in his second year in the role, having taken up the position in May 2023. While Léger's "as reported" pay was 6.6 million euros ($7.3 million) in 2023 – including 4.5 million euros in restricted stock awards – this figure dropped to $5.3 million in 2024.

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Conversely, Florida insurers experienced the largest increase in average CEO pay among all peer groups, with compensation more than doubling from $3.6 million in 2023 to $7.7 million in 2024 — an 111.4% jump.

This surge was largely attributable to the multiyear compensation arrangement for HCI Group's Patel. Excluding HCI Group, the average CEO compensation across the remaining companies in the cohort – Universal Insurance Holdings, Heritage Insurance and American Coastal — stood at $3.5 million, slightly below the previous year’s level.

Beyond Florida insurers, the next largest relative increase in CEO remuneration occurred among U.S. personal lines carriers. Average CEO pay in this group increased by 32.1% to $9.7 million in 2024, with Allstate CEO Wilson’s substantial pay hike accounting for roughly a third of the overall increase for the cohort.

Other peer groups also recorded notable increases, including global insurers (up 25.9% to $6.0 million), U.S. regional carriers (up 15.4% to $5.9 million) and the London market (up 13.0% to $5.2 million).

U.S. large commercial insurers recorded a 5.3% increase to $18.9 million.

Bermuda’s average CEO compensation remained essentially flat at $11.2 million as the increase in Arch CEO Papdopoulo's remuneration in 2024 was offset by a reduction at RenaissanceRe, alongside lower “as reported” pay at Greenlight Capital Re, Everest Group and SiriusPoint.

Aggregate CEO pay across the 75 listed companies in The Insurer’s panel (presented below) stood at $675.6 million in 2024, of which $326.2 million corresponded to cash compensation.

This was 15.0% higher than the $587.6 million aggregate pay in 2023, or 12.1% higher if the comparison excludes Arch. It also compares to 17.0% growth in 2023.

The slight deceleration in (re)insurance sector CEO pay growth in 2024 is consistent with what has been observed across the broader economy.

A recent study by executive compensation analysis firm Equilar, in partnership with the Associated Press, shows the median total compensation for S&P 500 CEOs rose by 9.7% to $17.1 million in 2024, down from a 12.6% increase in 2023.

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