Specialty re/insurer Brit reported a profit after tax of $157.6 million compared to $15.6 million in 2015 despite experiencing further rate deterioration.
“Market conditions have, as expected, remained difficult during 2016, with the industry experiencing continued pressure on premium rates,” said CEO Matthew Wilson.
“Against this backdrop with increased catastrophe activity, we delivered a respectable combined ratio of 96.4 percent, including 4.5 percentage points attributable to major losses.”
The combined ratio deteriorated to 96.4 percent in 2016 from 91.7 percent in 2015.
Brit experienced an overall rate reduction of 3.3 percent in 2016, a deceleration from the 4.1 percent reduction in 2015. The reduction was seen across both reinsurance business, which experienced rate reductions of 4.8 percent, and direct business, which experienced rate reductions of 2.9 percent.
Overall, gross written premiums fell to $1.91 billion in 2016 from $2.00 billion in 2015, a decrease at constant exchange rates of 2.3 percent.
Wilson said: “We have looked to balance our portfolio by actively defending our core business, ensuring rigorous risk selection in the classes experiencing pressure and modestly expanding in areas where profitable opportunities exist, while contracting in areas where it is felt that profit margins are thinner. We are also managing our net position through the selective use of additional reinsurance protections, such as increased cessions on quota shares.”
In September 2016 Brit announced the launch of Syndicate 2988, which has a capacity of £52m (US$82m) for its first year of trading.
“Delivering new products, solutions and perspectives for brokers and clients is at the very heart of our strategy. The launch of Syndicate 2988 is a powerful demonstration of this objective, and we look forward with excitement to the resulting expansion of Brit’s presence at Lloyd’s,” Wilson said.
The launch of Syndicate 2988 for the 2017 underwriting year was supported by third party capital.
Brit, Results, London, UK