
Sompo International suffers dip in underwriting income
Inflation and natural catastrophes cut into Sompo International’s first half underwriting income, the Bermuda-based re/insurer reported.
The company, the foreign insurance arm of Japanese insurance giant Sompo, said underwriting income for the fiscal first half through end-September slid 5.8% from the prior year.
In Sompo International’s commercial business, net losses and loss expense cost an added $77 million, including an $89 million increase in nat cat losses.
Intelligent Insurer reported that inflation added $48 million to cost lines and acquisition costs rose disproportionately on changes in the business mix, management indicated.
That more than offset the $65 million boost from rising rates in North America and global markets.
Commercial segment net premium earned rose by 15% in North America and nearly 5% in Global Markets, but was down 15% at North American agriculture unit AgriSompo and 1.3% in reinsurance, the largest Sompo International commercial line.
AgriSompo’s combined ratio rose 11.5 points from the prior year period to a technical loss at 101.8%.
Combined ratios were also up in Global Markets to the tune of 7.5 percentage points to 96.1% and by 1.9 points in reinsurance to 90.3%, management indicated. Only North America posted a margin improvement against the prior year.
Sompo International's consumer segment made up for about 86% of the reduction in underwriting suffered by commercial.
Top line gains in Turkey and Asia were credited with adding $109 million to the NPE tally ahead of the reduction of business in Brazil following a unit sale.
The consumer segment managed to take a notable 20 percentage points off of its combined ratio on a turnaround in Turkey to bring the segment back to a light technical profit.
For the larger group, including Japanese operations, infant nursing operations and asset management, net profits, measured in Japanese Yen for the group as a whole, were 2.6 times the prior year period on FX gains on Sompo International profits plus improved domestic earnings.
Editor's picks
Editor's picks
Related content
Bermuda Re
Newton Media Ltd
Kingfisher House
21-23 Elmfield Road
BR1 1LT
United Kingdom