Bermuda-based specialty P&C re/insurer Sompo International Holdings has recorded adjusted profit of 44.4 billion yen (USD 384 million) for the fiscal 3Q period.
This represents an increase of 28.8 billion yen (USD 294 million) over its 3Q profit for the previous year.
The company attributes the improvement in profits to an increase in its top-line growth, the absence of the COVID-19 negative impact, and higher net investment income.
Sompo International’s net written premiums increased by $178.6 million during 3Q to end the period at $785.4 million, with the increase primarily due to rate improvements and growth of crop insurance business.
Full-year forecasts for adjusted profit and net written premiums are now $56.5 million and $960.5 million, respectively.
Sompo International further disclosed that it booked 44.0 billion yen (USD 382 million) of catastrophe losses over the 3Q period, including from the Texas Freeze, Hurricane Ida, and the European floods.
Despite these losses, the company’s combined ratio improved by 4.6 percentage points to end 3Q at 94.7%, and underwriting likewise improved from a loss of $19 million in 2020 to a positive result of $275 million this year.
Its loss ratio also improved by 2.8 percentage points to 69.3%, with loss ratio for primary insurance business improving from 76.5% to 73.8% and the loss ratio for reinsurance business moving from 67.3% to 64.3%. For reinsurance, an 18.2 percentage point improvement for specialty business more than offset a 9.0 percentage point deterioration for catastrophe business.