Global insurer and reinsurer MS Amlin has reported a net loss of £136 million for the first quarter of the 2020 financial year, mainly due to volatility in the investment markets.
Income was down £159 million from the £24 million recorded in the first quarter of FY2019.
However, underwriting loss remained at almost the same level as the previous year, despite the estimated loss of £84 million from COVID-19.
The underwriting loss worsened by £5 million to a £56 million loss, compared with a loss of £51 million last year.
Instead, it was investment profit/loss, which decreased by £165 million year-on-year, that pushed the company into the red.
Investment profit came to £104 million in Q1 FY2019, compared with a loss of £62 million for the last quarter.
MS Amlin also reported a 3.0% decrease in net premiums written, due in part to the strengthening of underwriting rules and withdrawal from unprofitable lines in Europe.
The re/insurer’s combined ratio remained roughly in line with last year at 107.9%, only a slight deterioration from 107.0%.
This was caused by 10.3 percentage point increase in the claims ratio (79.2%) and a 9.4 percentage point decrease in the expense ratio (28.7%).
