Reinsurance News

MS Amlin falls to net loss as hurricane Ian and war in Ukraine dent underwriting

14th February 2023 - Author: Luke Gallin

The impact of investment losses, Hurricane Ian, and the ongoing war in Ukraine has seen MS Amlin post a net loss of £305 million for the period January to end of September 2022, as the firm’s combined ratio weakened to 111.9%.

ms-amlin-logoIn its financial year 2022 3Q results, which covers the nine-month period ending September 30th, 2022, MS Amlin has reported a £435 million rise in net premiums written to £2.875 billion, while net premiums earned increased to £2.246 billion.

However, incurred losses, including loss adjustment expenses, rose by £129 million to £1.636 billion, as expenses for acquisition and other operating expenses jumped from £696 million in 2021 to £785 million for FY22 3Q.

For the nine month period, MS Amlin has announced natural catastrophe losses of £212 million, of which £159 million is related to Hurricane Ian, with the flooding in Australia also having an impact.

In fact, these events have led MS Amlin to raise its FY22 annual forecast for natural catastrophe losses to £252 million.

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Losses related to Russia’s ongoing invasion of Ukraine reached £101 million for FY22 3Q.

As a result of these losses, MS Amlin’s underwriting performance came in at a loss of £95 million for the period, although this represents a year-on-year improvement of £139 million.

The firm says that once the Russia / Ukraine losses are excluded, underwriting profit would have been £6 million, with a combined ratio of 99.7%.

On the asset side of the balance sheet, MS Amlin has reported net investment losses of £166 million compared with gains of £91 million a year earlier, driven by financial market deterioration.

All in all, the company’s net loss widened from £190 million in FY21 3Q to $305 million in FY22 3Q.

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