Sompo Holdings’ international overseas insurance/reinsurance business has reported an adjusted profit of $652 million in the first half of 2024, an increase of $88 million from the $564 million reported in the same period last year.
The combined ratio for the first half of the year increased +2.0 pt to 94.1%, from the 92.1% reported in H1 2023.
According to Sompo, the increase in adjusted profit was mainly due to its stable underwriting results and higher investment income, which sat at $209 million for H1 2024.
This was partially offset by higher G&A and corporate expenses to support business growth and the impact of inflation.
The firm also noted that for FY2024 adjusted profit reflects strong SI Commercial underwriting results and continued strength in net investment income.
For H1 2024, SI Commercial P&C saw its net premiums earned grow to $4,417 million, from the $4,250 million reported in H1 2023. Net loss & loss expenses went down $56 million.
The segment also saw a $308 million increase in gross premiums written in the period, with approximately $250 million contribution from strategic initiatives.
Sompo’s strong growth in Reinsurance and Global Markets was partially offset by lower commodity prices in AgriSompo, such as corn, soybean and cotton.
Its North America, the business saw its rate/market environment and new business offset by additional reinsurance purchases, as it saw its retention rate go down 2pt to 53%.
The positive results in the reinsurance segment were influenced by successful renewals and strong new business written, reporting GPW of $3,650 million, NPW of $3,283 million, and NPE of $1,869 million.
Global markets saw topline growth in Brazil, Asia–Pacific (APAC) and Europe, Middle East, and Africa (EMEA).
The firm’s combined ratio saw a slight increase in the period, to 94.1%, primarily driven by increased operating expenses to support Sompo International’s growth strategy, partially offset from lower adverse prior year development relative to H1 2023.
In H1 2024, Sompo also saw its underwriting income go down to $264.2 million, from the $340.6 million reported in H1 2023.
This included $26.3 million from the North america segment, which went down from $153.8 million in H1 2023, as well as $33 million from global Markets, $50 million from AgriSompo and $155.4 million from reinsurance.
