Sompo International has published its third-quarter of the 2022 financial year results reporting an underwriting income of $256m, a lower figure compared to the same period last year, which was $275m.
The firm’s 3Q results felt the impact of Hurricane Ian, but was partially offset by top-line growth, Sompo noted. It reported $534m net incurred losses related to overseas natural disasters.
Of that total, $385m in losses were attributed to Hurricane Ian, $54m to Australia’s flood, $40 to the hailstorm in France, and $55m to other events.
As a result of these losses, the firm’s combined ratio for the period hit 95.9%, so up 1.2 percentage points year-on-year, driven by the higher loss ratio, somewhat offset by a lower expense ratio.
Sompo International also reported that its net premiums written for 3Q FY2022 expanded 22.5%, increasing to $7,561m. The firm noted that pricing effect, higher retention rate of crop insurance, and growth in casualty lines supported the year to date growth.
Gross premiums written in insurance (excluding crop) increased as well, this was mainly due to higher pricing, expanding +11.5%, increasing to £11,298m.
Net losses and loss expenses reported for Q3 2022 were £4,567 (+29.2%), with a loss ratio of 72.6%, up +3.3 points; expense ratio 23.3% (-2.1pt); and a combined ratio of 95.9% (+1.2pt).
On the asset side of the balance sheet, Sompo International recorded an increased investment income, from $257m in 3Q 2021 to $267m in Q3 2022. This was due to increased net interest and dividend income on a larger investment base, the firm noted.
All in all, Sompo Intl. has fallen to a net loss of $794 million for FY22 3Q, a decline of more than $1.1 billion, year-on-year.
