Reinsurance News

Sompo International sets sights on overseas growth

29th November 2022 - Author: Pete Carvill

Sompo International has signalled its intentions to expand and grow within Canada, continental Europe, and southeast Asia.

Sompo InternationalThe moves were intimated during a presentation given last Friday in Japan to senior executives at Sompo Holdings. It said that this will be achieved through the opening of new branch locations, expanding relationships with global clients, and pursuing what it called ‘transformative’ M&A and bolt-on acquisitions.

The firm predicted, too, that its gross written premiums for 2022 are set to hit $13,465m, up from $11,044m in 2020 and $12,272m in 2021. Adjusted profit is also predicted by the firm to go from $562m to $699m between 2021 and 2022. That same figure stood at $182m in 2020, although this included losses from the coronavirus pandemic of $118m.

The firm touted its achievements in the presentation, writing: “SI Commercial has grown gross premiums and adjusted profit significantly to become a top-tier global (re)insurance company.”

“Future growth,” it added, “will be supported by leveraging our global capabilities.”

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It also said that it had achieved its growth to date through leveraged improved market pricing, completed bolt-on acquisitions, expanded its global underwriting team, established a global franchise, and meaningfully improved scale.

Elsewhere, the firm said that it had seen its overseas insurance business achieve greater scale, diversification, and improved pricing to enhance profitability and stability of earnings. It also predicted that its expanding fixed income portfolio will benefit from a rise in interest rates while generating greater future profitability.

Sompo also reported steep improvements in pricing since 2017, saying that this figure stood then at 0.9% but has since risen steeply to reach 75.3% in the first half of 2022. Meanwhile, the firm’s core loss ratio has fallen from 60.1% in 2017 to a predicted 54.2% for 2022. It also spoke of its expense ratio, which has fallen over the same period from 34.9% to 23.3% predicted for the full year. This figure, it said, was in the industry top class.

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