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Neil Robertson, CEO, Canopius Group
30 March 2023News

Canopius CEO highlights 2022 ‘reset’ amid loss

Canopius Group, which has a substantial presence on Bermuda, made a loss last year but its CEO flagged the programme of transformation and reset for the business instigated last year which he said would lead to an ambitious growth strategy.

The company made a loss after tax of $25 million (including a negative total investment return of $80 million). Its gross written premiums increased to $2.3 billion (2021: $2.2 billion) with growth seen in all geographies. Its combined ratio was 93.6% (2021: 96.7%). In the US & Bermuda specifically, it was 84%.

Neil Robertson, group CEO, said: “In 2022 Canopius underwent a structured programme of transformation, with meaningful contributions from our colleagues across the group.

“We set out an ambitious strategy of growth over a three-year period, as a multi-national, multi-platform insurance company across three regional business units, the UK, US & Bermuda, and Asia Pacific.

“In delivering this growth journey, in 2022 we set about ‘resetting’ our operating model. We went through a restructure and ‘transformed’ the business to better align global products and regional expertise to unlock our full potential. These results show the significant progress that has been made and represent a very positive step forward for our Group.

“Our combined ratio of 93.6% is pleasing, particularly when considering the headwinds which our industry has faced this year. We have withstood unprecedented geopolitical uncertainty, macroeconomic turmoil and, like others, our results were impacted by Hurricane Ian.

“The loss after tax of $25m was driven by negative investment return, without which we would have recorded a satisfactory pre-tax profit. A negative investment return of $80m (-2.8%) is due to interest rate increases creating mark-to-market unrealised losses that we expect to unwind into 2023. Our defensive and short duration portfolio leaves us well positioned.

“2022 was challenging, however, we have weathered these challenges while building a better business which is now fully capable of harnessing the power of our talent and technology to unlock innovation, facilitate transition and drive enterprise and stakeholder value. Further, we have made great strides in improving systems and processes and are well positioned for implementation of 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.

“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 very much focused on building a long term sustainable and robust business that benefits all our stakeholders, and delivers on our promises and commitments. We look ahead, confident in our ability to maintain momentum and deliver a strong underwriting performance in 2023.”




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News
14 February 2023   The new recruits both join from Argo Group.
News
3 April 2023   He joins from QBE Insurance, where was group chief underwriting officer.
News
16 May 2023   The new unit will initially write non proportional aviation reinsurance.