Canopius Group, a global specialty re/insurer, has announced its 2022 financial results reporting that gross written premiums (GWP) increased to $2,338 million, up from $2,220 million in 2021, with growth seen in all geographies.
Additionally, the Group’s combined ratio improved to 93.6%, down from 2021’s 96.7%. This was credited to its strong performance across each geographical segment: US & Bermuda of 84%, UK of 96% and APAC of 90%.
Canopius also reported an attritional loss ratio of 44.3%, including losses from Russia-Ukraine and a loss after tax of $25 million (including a negative total investment return of $80 million).
Neil Robertson, Group Chief Executive Officer, said: “In 2022 Canopius underwent a structured programme of transformation, with meaningful contributions from our colleagues across the Group.
“We set out an ambitious strategy of growth over a three-year period, as a multi-national, multi-platform insurance company across three regional business units, the UK, US & Bermuda, and Asia Pacific.
“In delivering this growth journey, in 2022 we set about ‘resetting’ our operating model. We went through a restructure and ‘transformed’ the business to better align global products and regional expertise to unlock our full potential. These results show the significant progress that has been made and represent a very positive step forward for our Group.”
Considering the headwinds the industry has faced this year, Robertson described Canopius’ improved combined ratio as pleasing. And noted that the Group has withstood unprecedented geopolitical uncertainty, macroeconomic turmoil and, like others, their results were impacted by Hurricane Ian.
He also pointed out that the loss after tax of $25 million was driven by negative investment return, without which Canopius would have recorded a satisfactory pre-tax profit.
A negative investment return of $80 million (-2.8%), Robertson added, is due to interest rate increases creating mark-to-market unrealised losses that we expect to unwind into 2023. And highlighted that the company’s defensive and short duration portfolio leaves them well positioned.
“2022 was challenging, however, we have weathered these challenges while building a better business which is now fully capable of harnessing the power of our talent and technology to unlock innovation, facilitate transition and drive enterprise and stakeholder value. Further, we have made great strides in improving systems and processes and are well positioned for implementation of IFRS17,” said Robertson.
“We are now more in control of our own destiny and can reach our goals without needing to rely on a strong economy or further hardening in market conditions. We have a business that is well-positioned to take advantage of a continued positive rating environment, and we expect the mark-to-market investment losses to unwind positively in the year.
“Canopius is very much focused on building a long term sustainable and robust business that benefits all our stakeholders, and delivers on our promises and commitments. We look ahead, confident in our ability to maintain momentum and deliver a strong underwriting performance in 2023.”
