Canopius sees premium, investments boost after challenging year
Canopius sees premium, investments boost after challenging year
3 April 2023
Specialty insurer and reinsurer Canpoius says it has introduced business improvements and is well positioned to take advantage of a continued positive rate environment after reporting an after-tax loss last year due to unrealised investment losses.
Gross written premium rose to $US2.34 billion ($3.5 billion) from $US2.22 billion ($3.32 billion) a year earlier and the combined operating ratio improved to 93.6% from 96.7%, underpinned by a strong performance across its geographies.
But the company reported a loss of $US25 million ($37 million), including a negative total investment return of $US80 million ($120 million) due to mark-to-market impacts from interest rate increases.
CEO Neil Robertson says the company has undergone a transformation program, has reset its operating model and has an ambitious three-year growth strategy across its UK, US and Bermuda and Asia Pacific business units.
The improved combined ratio was achieved amid unprecedented geopolitical uncertainty, macroeconomic turmoil and impacts from Hurricane Ian, he said, while the company has improved systems and processes and is prepared for the start of accounting standard IFRS17.
“We are now more in control of our own destiny and can reach our goals without needing to rely on a strong economy or further hardening in market conditions,” he said.
“We have a business that is well-positioned to take advantage of a continued positive rating environment, and we expect the mark-to-market investment losses to unwind positively in the year.”
Canopius is confident in its ability to maintain momentum and deliver a strong underwriting performance this year, he says.
The group underwrites through Lloyd’s Syndicate 4444, a US surplus lines insurer, Canopius US Insurance and Bermuda-based Canopius Reinsurance.
