Bermuda-based property and casualty re/insurer, Sompo International, saw its profits surge 81% to $320 million for the full-year 2019, mainly due to top line growth centred on specialty insurance.
The figure was up by $142 million on the adjusted profit of $177 million posted by the company in 2018.
Notably, Sompo International reported a 13.9% increase in gross premiums written, which moved from $5.96 billion to $6.79 billion.
Looking at net premiums earned, the result improved from $3.09 billion to $3.60 billion, including a 15% increase in insurance, which came to $1.87 billion, and an 18% increase in reinsurance, which totalled $1.74 billion.
Sompo International also saw 3.2 points of improvement to its combined ratio, which was recorded at 96.2% for full-year 2019, versus 99.4% in the previous year.
This was helped by a reduction in the loss ratio of 2.7 points, mainly due to improvements in US insurance business, as well as 0.5 points of improvement in the company expense ratio.
The improvement was offset somewhat by the loss ratio on Sompo International’s crop insurance business, which increased from 77% to 95% on the primary insurance side, and contributed to a 5-point rise in the specialty reinsurance segment.
The catastrophe reinsurance loss ratio was also well down from 57% in 2018 to 43% in 2019.
Additionally, the company saw a $352 million boost due to unrealised gains on securities, which helped to move its other income from a loss of $175 million in 2018 to a gain of $177 million last year.
Looking ahead, Sompo International is forecasting continued improvements to its net income, with a forecast of $377 million for fully-year 2020, representing 18% growth on the previous year.
It believes this will be helped by a $152 million jump in its underwriting income, mainly due to top line growth in insurance, offset by a $70 million dip in investment income, owing to COVID-19 induced market volatility.
Net premiums earned are forecast at $4.07 billion for 2020, consisting of $2.14 billion from insurance business and $1.93 billion from reinsurance business.
