Brit reports interim financial results

Brit reports interim financial results | Insurance Business America

Insurance News

Brit reports interim financial results

Group chief cites “an excellent overall performance”

Insurance News

By
Terry Gangcuangco

Lloyd’s insurer Brit Limited has published its interim financial results for the six months ended June 30.

Here’s how the commercial insurance provider fared in the period, with the 2022 figures restated given the company’s adoption of new accounting standard IFRS 17:

Metric

H1 2023

H1 2022

Group profit after tax (including discontinued operations)

$574.1 million

$32.1 million

Adjusted group operating profit/(loss)

$257.4 million

$(154.1 million)

Gross written premium

$2.02 billion

$1.99 billion

Underwriting profit (undiscounted)

$95.1 million

$79.5 million

Commenting on the numbers, group chief executive Martin Thompson said in an emailed release: “I am pleased to report that our strategy has delivered an excellent overall performance for the first half of 2023, underpinned by a strong underwriting result, with an undiscounted combined ratio of 93.3% for the period. This primarily reflects the combination of a healthy attritional ratio and the absence of any major losses.

“Market conditions remain broadly positive, and we achieved risk adjusted rate increases of 7.7% in the first half, driven by the rising cost of reinsurance and market pressure on liability lines, primarily reflecting social inflation. In total, we have seen compound increases since January 1, 2018 of 65.7%.

“However, while rate increases continue to accelerate in a number of classes, others have seen increased competition and a reduction in the level of rate, putting pressure on premium income in some lines.”

The CEO said Brit has remained highly disciplined and focused on underwriting profitability against the abovementioned backdrop, adding that the company is well placed to navigate the challenges being presented by the second half while also taking advantage of the opportunities.

“We have a clear strategic focus on driving performance and profitability, and this clarity will stand us in good stead,” Thompson said. “Our significant investments in data and digital are enhancing the way in which we write business and interact with our trading partners and will ensure Brit’s future success as a lead underwriter, while Ki continues to revolutionise the follow market.

“Finally, our unique culture underpins all of this, creating a positive environment that empowers our people and makes Brit a home for talent. We remain excited about what Brit can achieve and look forward with confidence.”

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