LONDON – March 12, 2024 – Canopius Group, a leading global specialty and P&C (re)insurer, today announced its financial results for the year ended December 31, 2023.
Highlights include:
- Insurance Contract Written Premium increased 22% to $2.80bn (2022: $2.29bn)
- Profit after tax of $363m (2022: $129m)
- Tangible Net Asset Value (TNAV) increased to $1.45 bn (2022: $1.13bn)
- Net insurance revenue increased 10% to $1.77bn (2022: $1.61bn)
- Group net combined ratio of 88.7% (undiscounted) and 83.9% (discounted)
- Total investment return of 5.6%, amounting to $173m (2022: -$80m)
- Return on Opening Tangible Equity (ROTE) of 32%
Neil Robertson, Group Chief Executive Officer, said: “I am delighted with our 2023 results, achieving the strongest underwriting result in our history. Canopius has been able to deliver attractive underwriting profitability and business growth while undertaking major initiatives including adding substantial capabilities to our business.
“We have a clear vision against which we are executing our strategy – to deliver attractive and sustainable returns as a leading, dynamic international specialty and P&C (re)insurer, growing in areas where we have distinction or competitive advantage. I am pleased to report another year of strong delivery against this vision, and we are now establishing a track record of meeting our underwriting goals, quarter-on-quarter.”
Improved regional profitability after successful transformation
In 2023, Canopius Group was able to demonstrate growth and profitability across all three business regions of the UK, U.S. & Bermuda and APAC.
Robertson said: “Our 2023 results are a testament to the transformative work the business has undergone over the last two years. Our business leaders have been empowered, our operating models and systems enhanced and the accountability and transparency within our organisation has moved forward at pace.
“We have positioned the business to benefit from the broader industry tailwinds and in 2023 we continued to evolve our business, we materially strengthened our operational capabilities, our underwriting performance, and our structural growth prospects.”
Demonstrating strong fundamentals
In 2023, the absence of large catastrophe claims was a clear positive, but nevertheless Canopius saw a significant number of smaller catastrophe events from severe convective storms, wildfires, floods, and earthquakes.
Satisfactory attritional losses, including positive current and prior year developments, meant that overall, Canopius recorded a very strong underwriting result. This, combined with strong investment returns from our high-quality investment portfolio and a favourable tax item, allowed the Group to deliver a record Return on Opening Tangible Equity.
Canopius’ financial fundamentals are compelling, with both profitable growth and balance sheet strength including limited legacy reserves following a Loss Portfolio Transfer at the end of 2021. Canopius’ reserving position is prudent, and its robust capital surplus offers resilience as well as strategic optionality.
These factors, together with strong profitability were recently acknowledged by AM Best. The ratings agency upgraded Canopius’ previous negative outlook to a “stable” outlook, with an A- (excellent) rating maintained. This was a positive development that highlights the strategic and financial progress Canopius has made in recent years.
Focusing on continued success in 2024
Robertson said this year has started well for the Canopius Group, with attractive premium development, positive rate, and a satisfactory reinsurance renewal. He noted that while 2023’s result was very pleasing, Canopius’ journey continues: “We recognise that for us to continue to deliver value to customers and shareholders we must strive for ever greater excellence and consistency,” he said.
The broader rating environment remains dynamic and is being driven by several factors. This includes the sizeable shifts in reinsurance rate, capacity, terms and conditions, the ongoing inflationary impacts in claims and movements in interest yields”.
Robertson said: “Decisive actions have been taken to accelerate delivery in the last few years and execution against our plans remains of utmost focus. Combined with a still positive overall rating environment, we look forward with confidence to navigating what 2024 brings and further developing our value proposition to drive consistent performance and build on our success and momentum achieved in 2023.”
– Ends –
Note: Unless otherwise stated, all figures are on IFRS 17 basis.
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