Convex flags positives despite 2022 loss

Bermuda-based Convex Group enjoyed robust growth last year and posted improved underwriting results amid what it called strong rating conditions. But it still posted an overall net loss largely due to investment losses and foreign exchange impacts.

The company’s gross written premiums reached $3 billion in 2022, a 43% increase on 2021. Its combined ratio improved to 98% compared with 117% a year earlier. But it posted a negative investment return of $107 million, compared with a positive investment return of $25 million in 2021.

All this meant it posted a net loss of $142 million, a decrease on the $158 million it lost in 2021.

Stephen Catlin, executive chair of Convex Group, said: “I would like to thank my colleagues for another tremendous year. It’s through their dedication and expertise that Convex continues to build its reputation in the market and to have surpassed $3bn of GWP in less than four years is truly impressive.

“Convex continued to grow and evolve in 2022. In July, Paul Brand assumed the role of group CEO and Convex has thrived under his leadership.

“We continue to experience strong rating conditions and January’s renewals reflected that. However, our market must continue to work hard to provide exceptional service to its clients, as well as demonstrate its value to the wider community after a decade of disappointing returns. I am confident that we, as an industry, are up to the task; this is a period of exciting opportunity and developments for the market.”

Paul Brand, CEO of Convex Group, said: “These results reflect the hard work of our colleagues and superb support from our brokers. I’m incredibly proud of what we’ve accomplished. But it’s not just about the numbers. When we launched Convex, building a respectful and thoughtful culture was also a top priority, but we aren’t complacent and continue to invest in our people and culture. 2023 promises to be yet another exciting year, with GWP expected to exceed $4bn.”