Inigo reports fivefold increase in profits for 2023

Inigo reports fivefold increase in profits for 2023 | Insurance Business New Zealand

Reinsurance

Inigo reports fivefold increase in profits for 2023

Premiums also exceed $1 billion threshold

Reinsurance

By
Mika Pangilinan

The specialist re/insurer Inigo Limited has announced a significant increase in its financial performance for the year 2023, with profits before tax reaching $144.5 million from $28.7 million in the previous year.

The past year also saw the company crossing the billion-dollar threshold in gross written premiums (GWP), totaling $1.1 billion, up from $801.5 million in 2022.

This means that Inigo was able to boost its GWP by 35.2% during its third year of operation. Additionally, net earned premiums climbed 44.6%, moving from $513.8 million to $743.2 million.

The firm attributed its profitability to an improvement in the combined ratio, which tightened to 85.5% from 94.4% a year earlier. It said the change was driven by a 7.2-point improvement in the claims ratio, which settled at 55.3% owing largely to reduced catastrophe losses and a more efficient release of reserves from previous years.

Inigo also achieved a lower expense ratio of 30.2%, according to a company release, down by 1.7 points, attributed to increased operational leverage.

Furthermore, it reported an increase in investment returns, which rose fivefold to $46.1 million, or $59.8 million when including unrealized gains recognized in other comprehensive income.

The value of cash and investments likewise surged by 43.8% to $1,466.6 million, and net assets increased by 26.2% to $808.9 million.

In December 2023, Inigo also raised an additional $50.1 million in capital to fuel its ongoing growth initiatives.

“We love what we do,” says Inigo CEO

Commenting on the financials, Inigo chief executive Richard Watson (pictured above) emphasized the company’s strategic direction and the technological advancements that are shaping their operations.

“We love what we do and we are sticking to our strategy,” he said. “We focus on a limited number of areas where our customers really value the expertise and knowledge we are building.”

“The advances in computer science and the ability to gather and analyze data, offer so much potential to reinvent how risk is understood and managed. What we are able to do now is so cool, and feels like a massive advance in how Inigo and our customers can understand the science of risk.”

Watson also expressed gratitude for the ongoing support from various stakeholders, including Lloyd’s, policyholders, brokers, and investors. He also praised the Inigo team for their contributions.

“We have over two hundred staff,” he said. “They have helped build a fabulous culture. We value their curiosity, the constant desire to learn and a willingness to park the ego and collaborate.”

Looking forward, Watson underscored the importance of continued investments in data and knowledge as critical to navigating an increasingly unpredictable global landscape.

“In a world which is increasingly unpredictable, whether from climate change, geopolitical instability, or social change, we believe these skills have never been more needed,” Watson concluded.

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