Marco Capital Holdings Limited, a European provider of legacy solutions to the non-life insurance and reinsurance market, has reported a pre-tax profit of $51,403 for the full year 2023, an improvement from the loss of $18,819 seen a year earlier, although the firm has still reported a technical loss for the year.
In fact, for 2023, a technical loss of $8,437 is steeper than the loss of $5,947 achieved in 2022, as the company continued to build out its operations and identify strategic and profitable growth opportunities during the year.
Year-on-year, net written premium increased significantly, from $12,337 in 2022 to $123,359 in 2023, driven by strong growth in motor, which accounted for the large majority of the year’s premium.
Net premium earned rose from $20,659 in 2022 to $123,587 in 2023, again driven by the growth in the motor line of business.
But as premiums rose, so too did claims incurred, net of reinsurance, for the legacy player. Last year, claims incurred totalled $8,501, but this has risen substantially to $102,647 for 2023, with $86,262 of this total coming from the motor line.
Claims, as well as a rise in net operating expenses to $9,600 from $5,031 in 2022, and a rise in other underwriting expenses to $19,777 from $13,074, has seen Marco report a technical loss of $8,437, compared with a technical loss of $5,947 in 2022.
During 2023, motor was the only line of business that generated a technical profit, at $37,301, but this was more than offset by losses in Marine, aviation and transport, Fire and other damage to property, General liability, and Credit and suretyship.
The Group currently has GAPEE gross technical liabilities of $501,584, up from 2022’s $329,439, and net technical liabilities of $442,711, compared with 2022’s $290,867.
“Technical Liabilities have increased in 2023 due to the acquisition of Marco International Insurance Company Limited and Kelvin Re Limited in addition to the completion of a significant LPT reinsurance deal by Syndicate 1254,” says the firm.
On the asset side of the balance sheet, Marco has reported a net total investment return of $27,757, a stark improvement on the loss of $3,234 seen in 2022.
