The insurer has confidence ’that it is well placed to respond to the opportunities and challenges ahead’
Brit Insurance remains “optimistic” following pandemic uncertainty as it reported a $247.1m (£181.94m) pre-tax profit for its full year financial results for the year ending 31 December 2021.
Profit after tax was $236.9m (£174.43m) for the same reporting period and its combined operating ratio was 95.7%, compared with 112.7% in 2020.
Gross written premiums (GWP) amounted to $3,238.3m (£2,384.4m) in 2021, up from $2,424.4m (£1,784.4m) in 2020 - an increase of 31.8%.
The insurer also gained $22m (£16.2m) following the sale of two subsidiaries.
However, its major losses totalled $324.4m (£238.86m) in 2021, thanks to Hurricane Ida, which resulted in costs of $200.5m (£147.63m), the Texas winter storms with costs of $77.7m (£57.21m), the European flood losses costing $18m (£13.25m) and Covid-related losses reaching $28.2m (£20.76m).
Overall, the impact of Covid-19-related claims on Brit’s 2021 performance was $15.9m (£11.71m).
Martin Thompson, Brit Insurance’s interim group chief executive, said: “I am pleased to report a positive 2021 for Brit, with our underwriting performance and investment return delivering a strong overall result.
“Our clear strategy saw us deliver a combined ratio for the year of 95.7%. This reflected the combination of an excellent attritional ratio, prior year reserve releases and increased income from our third-party capital management and MGA businesses.
“Looking ahead to 2022, while uncertainty remains around Covid-19, rising inflation and the potential of increased frequency and severity of major loss events, we remain optimistic.
“Ongoing rate rises, continued improvement in our attritional claims ratio and our clear strategy give us confidence that Brit is well placed to respond to the opportunities and challenges ahead.”
Strategy
Thompson stepped in as interim chief executive of Brit last October following chief executive Matthew Wilson taking a leave of absence due to health reasons.
“Underpinning this performance was continued successful execution against our strategy of leadership, innovation and distribution, with the progression of our business testament to the dedication of our people and the unique culture Wilson and his team have created at Brit. All of us at Brit and Fairfax wish Wilson well and look forward to his return,” Thompson added.
Brit’s strategy centres around:
- Combining its US operations under the brand Ambridge, to create a single MGA.
- Buying the remaining shares of Camargue Underwriting Managers (Proprietary) Limited.
- Continued focus on its customers, with the launch of an algorithm to enable a faster claims response to catastrophe events and its Direct Pay claims solution.
- Piloted the first continuous binder at Lloyd’s.
- Launched the Keel Marine Consortium, which covers marine war and breach call risks.
Championing data and technology
Meanwhile, Brit’s digital Lloyd’s syndicate Ki recorded GWP of $395.6m (£291.28m) following a successful year of trading.
Thompson said: “Championing the potential of data and technology is central to Brit’s future success. Ki is an embodiment of this, but we also made strong progress across the whole of Brit in delivering on our innovation agenda.
“This includes significant milestones in how we use technology in claims, investment in how we use data to empower our lead underwriters and, in January 2022, the appointments of a chief technology officer and a chief data officer.”
No comments yet