Insurer and reinsurer Brit Ltd has reported gross written premiums of USD1.464 billion for H1 2021, up slightly from $1.282 billion during the same prior year period.
The company also reported a combined ratio of 94.6%, an improvement from the 106.7% reported in H1 2020.
The company claims that this reflects a healthy attritional ratio as well as robust prior year reserve releases and increased income from its third party capital management and MGA businesses.
It was, however, partly offset by the impact of the Texas winter storms and COVID-19 loss activity.
The re/insurers’ operating profit totalled $212.5 million, improving from last year’s loss of $205.3 million.
Matthew Wilson, Group Chief Executive Officer of Brit Limited, commented: “I am pleased to report a very positive first half of 2021 for Brit, with our underwriting performance and investment return delivering a strong overall result. Underpinning this performance was our continued successful execution against our strategy of Leadership, Innovation and Distribution.
“Against the ongoing backdrop of COVID-19, and the impact it continues to have on every aspect of life, the progression of our business is testament to the dedication of our people and the unique culture we have created at Brit. 2021 has continued to deliver strong risk adjusted rate increases with 10.2% achieved so far in 2021. Cumulative rate increases since 1 January 2018 now stand at 30.4%.
“Looking ahead to the remainder of 2021, uncertainty still surrounds COVID-19, including the short term impact from the easing of government restrictions, the longer term effectiveness of vaccination programmes and the economic consequences of the measures taken by governments.”
Gavin Wilkinson, Group Chief Financial Officer of Brit Limited, said: “After a challenging 2020, it is pleasing to report a strong first half result, reflecting the continued commitment of all our staff and the support of our shareholder, Fairfax. During the first half of 2021, Brit delivered a profit on ordinary activities before FX and tax of US$212.5m and a profit after tax of US$204.3m. Our return on net tangible assets was 15.5% non-annualised.
“Underwriting contributed US$43.6m to the result, with a combined ratio of 94.6%. The attritional ratio for the period improved by 2.1pps to 49.9%, reflecting good underwriting discipline, rigorous risk selection, and healthy compound rate increases.
“Major losses of US$93.0m contributed 10.1pps to the combined ratio, comprising the Texas winter storms (US$81.5m) and COVID-19 related losses (US$11.5m). It is pleasing to see the limited impact of COVID-19 related claims on our 2021 performance but wider uncertainty still remains.
“We have maintained our long-standing track record of prior year reserve releases. As part of our quarterly reserving process, we released US$41.4m, the equivalent of a combined ratio reduction of 4.7pps.
“These releases reflect increased certainty across a number of portfolios in both our direct and reinsurance books, together with overall net loss estimate reductions on the 2017 to 2020 catastrophe events and a small reduction in our 2020 COVID-19 related losses estimates.”