Convex posts back-to-back net profits
Convex has recorded its second consecutive net profit since its launch, with growth across all business lines.
The specialty re/insurer reported a net profit of $506 million for 2024, slightly up from $503 million the previous year.
Gross written premium was $5.2 billion, an increase of 22% from $4.2 billion in 2023.
Underwriting profit was $381 million, an increase of 57% from $242 million in 2023.
Combined ratio dropped to a pleasing 87.6% compared with 89.6% the year before.
Paul Brand (pictured), CEO of Convex Group, said: “This is a hugely impressive result which, in no small part, is down to the exceptional Convex team.”
While 2024 saw several natural catastrophe events, including Hurricane Milton, Hurricane Helene and the Calgary hailstorms, Convex’s losses from these events were within modelled expectations, the company said.
Stephen Catlin, executive chair of Convex Group, said: “A huge thanks to all of our brokers and clients for their continued support in helping us achieve yet another outstanding result, reaching $5 billion in premium within five years. Despite another challenging year for the industry due to natural catastrophes, market conditions and rates remain satisfactory. Convex will continue to develop, embracing both the challenges and opportunities that lie ahead.”
Investment return was also up from $240 million to $272 million last year, due to the increase in assets under management of investment portfolio and the broadening out of risk asset mandates.
Convex has received in principle approval to launch Lloyd’s Syndicate 1984, which will begin underwriting from April. Syndicate 1984 has an initial target to underwrite £150 million of gross written premium in 2025.
Catlin said: “I am also very pleased that we will soon have a presence at Lloyd’s with the imminent launch of Syndicate 1984. It’s good to be back.”
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