Canopius to seek growth under NKSJ
Canopius Group posted solid results for 2013 – its tenth year in business and its last as an independent entity following its recent acquisition by Japanese insurer NKSJ Holdings.
That deal, which is expected to complete in the second quarter of 2014, will help the business add breadth and scale to its operations both organically and through potential acquisitions, said Canopius CEO Michael Watson.
The specialist re/insurer made a net profit of £99 million in 2013, more than double the £49 million it made in 2012. Its gross written premiums also grew by 25 percent to £866 million compared with £692 million the year before.
Its combined ratio for the year was 85 percent, ten percentage points better than the 95 percent it posted in 2012, while its return on equity for the year was 25 percent compared with 17 percent the year before.
“2013 was a landmark year for Canopius: a 25% increase in gross premiums, driven by acquisitions and organic growth, record post-tax profits of £99 million, a return on equity of 25%, and a combined ratio of 85%,” said Watson, chairman and chief executive of Canopius.
“A sparkling set of results and a fitting finale to our first decade. Given our business mix, I am especially pleased by the reduction in our attritional loss ratio to 49%, one of the lowest in the market. This demonstrates our focus on underwriting fundamentals and the skills of our underwriters in challenging market conditions.
“We look forward to our second decade with confidence. The acquisition of Canopius by NKSJ Holdings is anticipated to complete in the second quarter of 2014. We are proud to become the global specialty re/insurance platform of one of the largest insurance groups in the world, and eagerly anticipate building a business of appropriate breadth and scale for NKSJ. With the additional financial backing and global licence network that NKSJ provides, our track record of growth, both organically and through M&A, is set to continue.”