White Mountains has released its third quarter results for 2024 for its Ark partner firm reporting gross written premium (GWP) growth to $374 million compared to the $251 million reported the same period last year.
Ark’s GWP for the first nine months of 2024 was $1.9 billion, compared to the $1.7 billion seen in 9M 2023.
Net written premiums for Q3 2024 stood at $331 million, an increase from Q3 2023’s $225 million. For 9M, net written premiums were $1.4 billion, an improvement from the $1.2 billion reported in the same period last year.
At $507 million, net earned premiums also saw an improvement from Q3 2023’s $438 million. $1.1 billion were reported for 9M 2024, which compares to the $972 million seen in 9M 2023.
In Q3 2024 Ark generated a combined ratio of 79%, which included 17 points of catastrophe losses, driven primarily by hurricanes Helene, Debby, and Beryl as well as Calgary hailstorms, compared to 11 points of catastrophe losses in the third quarter of last year.
White Mountains noted that Ark’s combined ratio in Q3 2024 included five points of net favourable prior year development, primarily from property lines of business, compared to less than one point of net favourable prior year in Q3 2023.
Ark reported pre-tax income of $119 million in the third quarter and $202 million for the first nine months of 2024. These figures compare to the $62 million reported in Q3 2023 and $140 million in 9M 2023.
According to the firm, Ark’s results included net realised and unrealized investment gains (losses) of $53 million for this year’s third quarter and $84 million in 9M 2024, compared to $7 million losses in Q3 2023 and $36 million gained in 9M 2023.
The Ark/WM Outrigger segment saw a combined ratio of 77% in Q3 2024, which remained the same as the combined ratio reported in the prior year’s quarter. The CoR for the first 9M of 2024 was 84% compared to 83% reported in the same period last year.
Ark/WM Outrigger reported gross written premiums of $374 million and $1.9 billion, net written premiums of $339 million and $1.4 billion, and net earned premiums of $552 million and $1.2 billion in Q3 and the first 9M of 2024.
The above figures compare to gross written premiums of $251 million and $1.7 billion, net written premiums of $231 million and $1.3 billion, and net earned premiums of $499 million and $1.1 billion in Q3 and the first 9M of 2023.
Ian Beaton, CEO of Ark, commented: “Ark had a good third quarter. The combined ratio was 79% in the quarter, an improvement of two points year-over-year. Gross written premiums were $374 million in the quarter and $1,943 million year-to-date, up 49% and 17%, respectively, from 2023 levels despite generally flat rate change. We continue to experience good growth across several lines of business, aided by new underwriters and product classes.”
In the fourth quarter, hurricane Milton significantly impacted the re/insurance industry, resulting in substantial losses. Industry estimates are still in their preliminary stages and vary widely, the firm noted.
Ark currently believes that Milton’s losses will not cause a material deviation of Ark/WM Outrigger’s full-year 2024 actual catastrophe losses from the planned catastrophe losses.
