Canopius net income jumps 53%
Canopius, which has substantial operations in Bermuda, said net profits jumped by more than 50% in the first half of 2024, driven by revenue growth and higher investment returns.
Neil Robertson, group CEO, said the 53% rise in net profit to $179 million also benefited from strong industry fundamentals.
“Strong revenue growth, lower expense ratios, a higher investment return and an increase in the discount rate on incurred claims were the primary drivers of a significant uplift in profit against the prior period,” Neil Robertson, group CEO, said of the profit jump.
Insurance contract written premium increased 23% to $1.8 billion on a 2% rate gain, with growth said to be built on “contributions across its geographic and product segments.” Written to IFRS17’s margin-inclusive top line measure of insurance revenues and after reinsurance, growth came to 24%.
Canopius' undiscounted combined ratio edged up to 91.1% from 90.9% in H1 2023, due to more frequent small catastrophe losses and continued cautious loss estimates, the company said.
Robertson remarked: “The year has started well for the Canopius Group, with attractive premium development, positive rate and good underwriting and investment returns delivering an annualised ROTE of 24.7% (1H23: 20.6%). We were again able to demonstrate growth and profitability across our three business regions of the UK, US & Bermuda and APAC.”
He added: “There were limited large catastrophe claims in the first half, although as in 2023 there were a significant number of smaller catastrophe events from severe convective storms, wildfires, floods and man-made claims.
"Attritional loss experience remains strong, including positive current and prior year developments and investment return from our high-quality investment portfolio continues to trend positively.
"Canopius’ financial fundamentals are compelling, with both profitable growth and balance sheet strength. Canopius’ reserving position is prudent, and a robust capital surplus offers resilience as well as strategic optionality.”
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