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COVID forces MS Amlin to £209mn loss

12th February 2021 - Author: Matt Sheehan

Japanese insurer MS&AD Insurance Group Holdings has reported that its MS Amlin subsidiary fell to a £209 million net loss in the FY2020 3Q period.

ms-amlin-logoThe loss was mainly attributed to the COVID-19 pandemic, which caused MS Amlin to post an underwriting loss of £235 million for the period.

This was a decrease of £187 million on the £47 million loss it posted for the 3Q period in the previous year.

This resulted in the business recording a combined ratio of 110.5%, which was a decrease of 8.5 point on the 102.0% from the previous year.

Investment profit similarly fell from £235 million to £90 million, and net premiums written likewise decreased from £2.75 billion to £2.41 billion.

RMS

Excluding the impact of COVID-19, MS&AD says the MS Amlin business would have recorded underwriting profit of £39 million and a combined ratio of 98.0%.

Looking at the overall results of MS&AD, net income amounted to 150.0 billion yen for the FY2020 3Q reporting preiod, a year-on-year decrease of 119.8 billion yen.

Group adjusted profit, meanwhile, came to 201.2 billion yen, which was almost flat year on year with a progress rate of 95.8%.

In terms of the top line, net premiums written decreased by 1.7% year-on-year to 46.5 billion yen, mostly due to a 10.1% decline in premiums written at MS&AD’s overseas insurance subsidiaries due to the impact of the strong yen and efforts to improve MS Amlin’s profitability.

The two domestic non-life insurance companies combined posted a 0.6% increase in net premiums written due to brisk sales of fire and automobile insurance, despite a large negative impact from compulsory automobile liability insurance.

MS&AD attributed the decrease in its income to a number of factors, including 64.5 billion yen in rebound from the effect of reorganization of MSI’s international business, and 90.2 billion in changes to the catastrophe reserve.

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