After dealing with a third quarter that brought with it significant catastrophe and earnings losses, the reinsurance industry is finding silver linings in the de-risking of their portfolios and the prospects for future rate hikes.

A few global reinsurers surpassed analyst expectations on revenues, but three of the biggest companies logged EPS misses, according to an S&P Global Market Intelligence analysis. Alleghany Corp. and Reinsurance Group of America Inc. recorded losses after being expected to record positive EPS; while Everest Re Group Ltd. exceeded analysts' median estimate, it still posted a loss for the quarter.

Everest Re CEO Juan Andrade in an earnings call said the primary market has benefited from multiple quarters of strong rate improvement, a reduction in limits and the strengthening of terms and conditions. The executive expects "strong portfolio economics" to emerge as the reinsurer continues focusing growth on core trading partners. Andrade also said the share of the company's book exposed to catastrophe losses has declined.

Berenberg analyst Kathryn Fear said the reinsurance market is currently very attractive, with rates continuing on an upward trajectory amid increased risk aversion among primary insurers due to the COVID-19 pandemic and ongoing economic uncertainty.

Hannover Re achieved beats in EPS and revenue, and Fear said the company demonstrated why it deserves a premium valuation versus peers. Hannover Re enjoys lower volatility of return on equity than much of the rest of the industry, which will have to contend with 2021 likely being among the top five most costly catastrophe years, the analyst said.

Jefferies analyst Philip Kett called Hannover Re the "cash flow king" in the reinsurance industry and said it is growing volume into the hardening cycle because of its reserving strength and robust capital position.

S&P Global Ratings acknowledged that the sector's capitalization position remains robust and concurred that prices will rise in 2022. That said, the rating agency has a negative outlook on the global reinsurance space, saying that the industry likely will not earn its cost of capital this year and could struggle to do so in 2022.