Reinsurance News

Russia and Ukraine related losses make dent in MS Amlin Q1 results

5th August 2022 - Author: Kassandra Jimenez-Sanchez

MS Amlin, a specialist re/insurer, has reported its fiscal year 2022 first quarter results, which saw a higher net loss driven by the impact of losses related to Russia and Ukraine, and a negative investment performance.

ms-amlin-logoFor this year’s Q1, MS Amlin reported a net loss of £93 million, compared to the -£49 million reported in the same period last year.

The re/insurer saw an underwriting result of -£66 million, compared to the -£41 million in Q1 2021. The loss in this quarter was mainly due to the impact of £95 million losses related to Russia and Ukraine, MS Amlin highlighted.

In addition, despite measures such as flexible hedging of stocks and shortening of bond durations, the increase in interest rates triggered rapid market fluctuations in bond and stock prices, resulting in an investment loss of £21 million.

In last year’s first quarter investment saw an income of £14 million.

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MS Amlin reported a non-operating loss of £93 million, a considerably higher figure compared to the £49 million loss reported in last year’s first quarter.

Additionally, incurred losses were £492 million compared to the £438 million in last year’s Q1. MS Amlin reported that its expense for acquisition and other operating expenses were £235 million, slightly higher to the prior Q1, which was £231 million.

Despite this, net premiums written increased from £1.27 billion in last year’s first quarter, to £1.39 billion in Q1 2022.

This all resulted in a weaker combined ratio for this year’s quarter, which increased 3.9 points, from 106.4% in Q1 2021 to 110.3%.

The re/insurer noted that excluding the impact of Russia and Ukraine related losses, the underwriting profit was £29 million, with a combined ratio of 95.5%.

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