White Mountains has released its first quarter results for 2023, reporting that its Ark partner firm saw gross written premiums (GWP) rise 28%, and an improved combined ratio of 94% when compared to the 100% reported in the same period last year.
According to the announcement, Ark’s combined ratio for Q1 2023 included three points of unfavourable prior year development, primarily due to Winter Storm Elliot, compared to two points of favourable prior year development in Q1 2022.
The firm’s combined ratio in this year’s first quarter also included negligible catastrophe losses compared to 17 points of catastrophe losses, driven primarily by losses from the conflict in Ukraine, in the first quarter of 2022.
Ark saw a rise in its GWP to $809 in Q1 2023 compared to the $633m reported in the same period last year. Net written premiums were $570m, up from $544m in Q1 2022; and net earned premiums were $250m compared to $194m reported in the first quarter of 2022.
The reinsurer also saw a pre-tax income of $36m in Q1 2023 compared to a loss of $23m in the same period last year. Ark’s results included net realised and unrealized investment gains of $25m compared to the $18m loss in Q1 2022.
White Mountains noted that during the fourth quarter of 2022, Ark sponsored the formation of Outrigger Re Ltd., a Bermuda registered special purpose insurer and segregated accounts company, to provide collateralized reinsurance protection on Ark’s Bermuda global property catastrophe excess of loss portfolio written in calendar year 2023.
As a result, in the first quarter of 2023, White Mountains began reporting the results of Ark and WM Outrigger Re, its own segregated account, together in the Ark/WM Outrigger segment, which saw a combined ratio of 92%.
Ark/WM Outrigger reported GWP of $809m, net written premiums of $614m and net earned premiums of $255m, as well as pre-tax income of $42m in the first quarter of 2023.
Alone, WM Outrigger Re’s combined ratio was 21%, gross and net written premiums of $44m and net earned premiums of $5m.
Ian Beaton, CEO of Ark, commented: “We are off to a good start in 2023 amidst a continuing strong rate environment, particularly in property and specialty. Driven by January renewals, gross written premiums were up 28% from 2022, with risk adjusted rate change up 14%.
“Looking forward, mid-year renewals are going well while market conditions remain attractive, and we are optimistic about continued profitable growth in the book.”
