Sompo International has disclosed that its USD-basis adjusted profit exceeded forecasts by $39m in 2023, reaching a preliminary $1.15bn, despite substantial reserves strengthening in Q4.
According to the Bermuda headquartered re/insurer, it strengthened 2019 and prior accident year reserves in Q4 2023, and the balance for future years, resulting in a charge of $575m.
Still, the firm’s USD-basis adjusted profit exceeded the forecast, hitting $1.15bn, aided by catastrophe losses being lower than expected, higher than anticipated net investment income on improving book yields, and deferred tax assets.
As for its Q3 2023 results, Sompo International has reported an adjusted profit of $860m, significantly higher than a year ago, driven by the aforementioned lower catastrophes and higher net investment income, which increased by $357m to $702m.
In Sompo International’s Commercial P&C business, gross premiums written for Q3 totalled $11.9bn, driven primarily by positive developments in the firm’s North America and Global Markets segments.
Meanwhile, net premiums earned increased by $105m, again propped up by the strong North America segment, which saw continued pricing improvements above loss cost trends.
Sompo International’s commercial P&C combined ratio in Q3 improved by 2.4 points to 92.4%, mainly due to lower losses from natural disasters. Underwriting income in this line was $518.1m, up from $350.7m in Q3 of 2022.
Looking at the firm’s consumer business performance, net premiums written in Q3 grew by $37m. The combined ratio for this line improved by 19.5 points to 94.7%, with an underwriting income of $47m, up $132m year over year, due to profitability improvement in Turkey and Brazil.
