MS Re records $93m corporate income tax provision
MS Reinsurance has recognised a one-time tax impact of $93 million stemming from the recognition of deferred tax assets in anticipation of the revision of the corporate tax system in Bermuda.
Zurich-based MS Re, which has substantial operations in Bermuda, said the tax provision boosted the company's net profit for 2023 to $366 million, marking a return to profitability after losing $50 million in 2022.
“2023 was a watershed year for our company,” MS Reinsurance chief executive officer Robert Wiest commented. “The combination of favourable market conditions and our own client-focused, portfolio approach allowed us to achieve our five-year turnaround goal in just three years, growing our book while continuing to improve the quality of our business.
“The success of 2023 provided a strong foundation for our ongoing growth and, as we continue to fully modernise our company, prepared us well for the opportunities and challenges in 2024 and beyond.”
MS Re, a subsidiary of MS Amlin AG, attributed the profits to favourable non-catastrophe experience across the portfolio, equity returns in line with the wider market performance and higher than planned returns on liquid assets.
Gross written premiums increased in absolute terms by 34% relative to financial year 2022. The GWP grew from $2.3 billion at the end of 2022 to almost $3.1 billion at the end of 2023. The company said the growth was driven by favourable market conditions, notably in European property and casualty, agriculture, and US casualty lines of business.
The combined ratio improved from 98% in 2022 to 90.5% in 2023.
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