Ark is reporting that gross written premiums jumped from $328m to $404m between Q2 2021 and Q2 2022, with net written premiums rising from $262m to $270m between the same two points alongside an increase in net earned premiums from $118m to $217m.
Comparisons between H1 2021 and H1 2022, gross written premiums for the firm jumped from $733m to $1,037m, net written premiums went from $605m to $814m, and net earned premiums moved from $222m to $412m.
Ian Beaton, CEO of Ark, said, “Ark had a solid second quarter. The adjusted combined ratio was 86% in the quarter, reflecting 12 points of favourable prior year development and seven points for incurred losses tied to Ukraine. Driven by strong April and June renewals, gross written premiums were $404m in the quarter, up 23% from 2021 levels, with risk-adjusted rate change up 9%. Looking forward, market conditions remain attractive, and we are optimistic about continued profitable growth in the book.”
The firm also said that its GAAP combined ratio was 87% and 93% in the second quarter and first six months of 2022 compared to 90% and 99% in the second quarter and first six months of 2021. Ark’s adjusted combined ratio, which adds back amounts attributable to third-party capital providers, was 86% and 93% in the second quarter and first six months of 2022 compared to 84% and 96% in the second quarter and first six months of 2021.
The adjusted combined ratio for the second quarter and first six months of 2022 included 11 points and 14 points of catastrophe losses compared to six points and 12 points in the second quarter and first six months of 2021. Catastrophe losses for the second quarter and first six months of 2022 included an estimate of incurred losses emanating from the conflict in Ukraine of seven points and nine points. The adjusted combined ratio in the second quarter and first six months of 2022 also included 12 points and seven points of favourable prior year development compared to 10 points and five points in the second quarter and first six months of 2021.
The results were released as part of White Mountains Insurance Group’s latest figures, which showed that the firm has a reported book value per share of $1,129 and adjusted book value per share of $1,152 as of June 30, 2022. Book value per share and adjusted book value per share decreased 5% and 4% in the second quarter of 2022 and 4% and 3% in the first six months of 2022, including dividends.
Manning Rountree, CEO of White Mountains Insurance Group, said: “ABVPS was down 4% in the quarter. The main drivers were mark-to-market losses in our fixed income portfolios and the decline in MediaAlpha’s share price. On the other hand, our operating businesses produced good results. BAM produced record levels of par insured. Ark produced an 87% combined ratio while growing premiums 23% year-over-year. The fair value of Kudu’s existing participation contracts declined 2.5% in the quarter, holding up well in a tough quarter for investment markets.”
They added: “Kudu grew adjusted EBITDA year-over-year and closed one new transaction. During the quarter, we signed and announced an agreement to sell NSM, and that transaction subsequently closed on August 1. This deal adds roughly $300 to ABVPS. During the quarter, we repurchased $63 million of shares. Including the proceeds from the NSM Transaction, undeployed capital now stands at roughly $1.6 billion.”
Comprehensive income (loss) attributable to common shareholders was -$174 million and -$143m in the second quarter and first six months of 2022 compared to $139m and $66m in the second quarter and first six months of 2021. Results in the second quarter and first six months of 2022 included $114m and $95m of unrealised investment losses from White Mountains’s investment in MediaAlpha. Results in the second quarter and first six months of 2021 included $113m and $71m of net realized and unrealized investment gains from White Mountains’s investment in MediaAlpha.
