Brit’s Wilson sees firm enter 2019 with ‘premium rates trending upwards’
Specialty re/insurer Brit has reported healthy upward trend in gross premiums as it heads in to 2019, Matthew Wilson, group chief executive officer, said in the company's 2018 results.
The firm reported an 8 percent increase in gross written premiums to $2.2 billion in 2018 up from $2 billion the year before. Its combined ratio improved to 103.3 percent from 112.4 percent in 2017. In its overview of results, the group reported a loss of $190.3 million on ordinary activities before tax compared with a profit of $5.5 million the year before.
Matthew Wilson, group chief executive officer of Brit Limited, said: “Brit generated strong premium growth in 2018, against a backdrop of improving rates, while taking decisive action in under performing areas. Premiums written increased by 8 percent through the expansion of our US operations and growth in classes where we have a strong track record. During 2018 both insurance and investment market conditions remained challenging, with catastrophe events and unrealised losses on equities and funds heavily impacting our results. Despite this, our results reflect our ability to maintain strong underwriting discipline while continuing to deliver selective growth, particularly through our BGSU and third-party capital platforms.
“We therefore enter 2019 with premium rates trending upwards and believe we are well positioned to benefit from this improving environment. 2018 again demonstrated the value of our products particularly in response to catastrophe losses. 2018 was the fourth most costly natural catastrophe year on record and, with 2017, the most costly back-to-back years ever. While we achieved overall risk adjusted rate increases of 3.7 percent, those increases were lower than initially anticipated, as available capacity has continued to exceed demand. “Against this backdrop, our business proved resilient with a combined ratio of 103.3 percent, including 12.0 percentage points in respect of major losses.
“In 2018 we again saw increased demand for our products. Our premium written grew to $2.2 billion, reflecting the favourable development of prior year premiums, the impact of rate increases, our investments in Syndicate 2988 and Sussex Capital, partly offset by reductions in certain classes following the actions outlined below. It was again pleasing to see an increased contribution from our initiatives of recent years as we continue to expand our international presence.
He said that for 2018, Brit’s total managed capacity across Versutus, Sussex Capital and Syndicate 2988 exceeded $400m and he highlighted the successful launch of Sussex Capital in January 2018 (an open-ended fund which writes through Sussex Re, providing collateralised reinsurance direct to third parties and to Brit).
He also highlighted the fourth annual expansion of Versutus, which now has invested capital of $187m, offering access to Brit’s underwriting franchise, as well as pointing to the major expansion of the company’s Syndicate 2988, launched in 2017, to reach a stamp capacity of £98.5m (c.$130m) for 2018.
“These initiatives represent excellent progress as we continue to develop and enhance our capital markets participation.”
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