Specialty insurer and reinsurer Convex has reported a rise in gross written premium (GWP) for the full-year 2021 to more than $2.1 billion, as the Group announces a reduced net loss of $158 million for the period.
For 2021, the re/insurer’s net loss shrank by almost 12% from the $179 million net loss reported in 2020, after allowing for acquisition costs, claims (net of reinsurance), operating expenses, and investment income.
Throughout the year, growth was strong at the firm with GWP increasing by 93%, year-on-year, from the roughly $1 billion seen in 2020.
At the same time, net premium earned spiked by an impressive 178%, year-on-year, from $375 million in 2020 to over $1 billion in 2021.
Reflecting the net loss, albeit improved, Convex has produced a net combined ratio of 118% for 2021, representing an improvement on the 173% combined ratio seen in the previous year.
On the back of a better result in 2021, Convex has started 2022 strongly. According to its Chairman and Chief Executive Officer (CEO), Stephen Catlin, Q1 reporting GWP stands at $971 million, net premium earned at $389 million, while the combined ratio has strengthened to 91.3%.
For the current year, Catlin says that Convex expects to exceed GWP of $3 billion.
“I’m immensely proud of the strides we have made in a short period and these results signify another year of underwriting excellence and are indicative of our established market position,” said Catlin.
“The ultimate number reflects our continued and strategic investment in Convex’s growth. 2021 saw our numbers grow from 300 team members to over 400, as well as the establishment of Convex Europe SA, through which we are providing our European clients with high-quality solutions. The launch of our MGU, Convex North America, is yet another positive development. Working alongside the London and Bermuda teams, the MGU will provide access to the burgeoning US excess & surplus lines market not accessible via the London Market,” he added.
Paul Brand, Deputy CEO, commented: “Uncertainty surrounding the war and humanitarian crisis in Ukraine remains and the Ukrainian people have our thoughts and wholehearted support. From an underwriting perspective, there is obviously a potential exposure that we are monitoring.”
