Ark Insurance Group has reported gross written premiums of $633m, net written premiums of $544m, and net earned premiums of $194m in Q1 2022 against gross written premiums of $405m, net written premiums of $342m, and net earned premiums of $105m in Q1 2021.
The firm said it was reporting a pre-tax loss of $23m in Q1 2022 compared to $33m in Q1 2021. Its pre-tax loss for Q1 2022 included $18m of net unrealised investment losses, driven primarily by mark-to-market losses on fixed income securities in its investment portfolio. Pre-tax loss for Q1 2021 reflected $25m of transaction expenses related to White Mountains’s transaction with Ark.
Ian Beaton, CEO of Ark, said, “Despite the tragic events in Ukraine, we are off to a solid start in 2022. The strong rate environment experienced in 2021 has carried through to 2022. Driven by solid January renewals, gross written premiums were up 57% from 2021, with risk adjusted rate change up 9%. Looking forward, market conditions remain attractive, and we are optimistic about continued profitable growth in the book.”
White Mountains, which acquired a majority stake in Ark in 2020, and which saw its income boosted in August by the company despite later pulling a $200m commitment from it, released the figures among its own results.
Manning Rountree, CEO of White Mountains, said it had had a good quarter.
Referring to Ark, Rountree said: “Ark produced break-even underwriting results in the quarter, reflecting the impact of estimated losses emanating from the conflict in Ukraine. Ark wrote $633m of gross written premiums in the quarter, up 57% year over year, with risk adjusted rate change up 9% year over year.”
According to Ark, its GAAP combined ratio was 100% in Q1 2022 compared to 109% to Q1 2021. Ark’s adjusted combined ratio, which adds back amounts attributable to third-party capital providers, was 101% in Q1 2022 compared to 108% in Q1 2021.
The adjusted combined ratio for Q1 2022 included 16 points of catastrophe losses compared to 17 points in Q1 2021. Catastrophe losses for Q1 2022 included an estimate of incurred losses emanating from the conflict in Ukraine.
The firm did confirm that losses could increase as the conflict continues.
