Specialist insurer Inigo Limited has surpassed $1 billion in gross written premium (GWP) in its third year of operation, as the company announces a significant, more than 400% rise in profit after tax of $144.5 million for the full year 2023.
All in all, GWP rose by 35.2% to $1.1 billion in 2023 compared with $801.5 million a year earlier, as net earned premium increased by almost 45% from $513.8 million to $743.2 million.
Inigo says that the main driver of the improved profits was an 8.9 percentage point improvement in the combined ratio to 85.5% in 2023, compared with 94.4% in 2022.
The lower combined ratio was supported by an improvement in the claims ratio of 7.2 points to 55.3%, driven by a year-on-year decrease in catastrophe losses and a higher level of prior year reserve releases. At the same time, the expense ratio came down by 1.7 points to 30.2% on the back of greater operating leverage.
On the asset side of the balance sheet, investment returns increased substantially to $46.1 million in 2023 compared with $7.6 million in 2022, or to $59.8 million from $18.4 million including realised gains recognised in other comprehensive income.
Cash and investments also increased when compared with 2022, reaching $1.466 billion in 2023, as net assets increased by 26.2% to $808.9 million, including $50.1 million of fresh capital the firm raised in December 2023 to support its growth plans going forward.
“We love what we do and we are sticking to our strategy. We focus on a limited number of areas where our customers really value the expertise and knowledge we are building. The advances in computer science and the ability to gather and analyse data, offer so much potential to reinvent how risk is understood and managed. What we are able to do now is so cool, and feels like a massive advance in how Inigo and our customers can understand the science of risk. The book is growing, and the potential is only limited by market cycles and our imagination. We are grateful for the continued support from our policyholders and brokers, from Lloyd’s and our investors,” said Richard Watson, Chief Executive of Inigo.
“We have over two hundred staff; they have helped build a fabulous culture. We value their curiosity, the constant desire to learn and a willingness to park the ego and collaborate.
“Looking ahead, the search for better data and knowledge continues to be our primary focus. In a world which is increasingly unpredictable, whether from climate change, geopolitical instability, or social change, we believe these skills have never been more needed,” he added.
