Brit Limited (Brit), a global specialty (re)insurer and a member of the Fairfax Financial Holdings Limited group of companies (Fairfax), had a strong run in 2021, despite the persistence of the COVID-19 pandemic, regulatory changes, and other factors – boasting solid full-year results.
For the year ended December 31, 2021 (FY21), Brit displayed a strong financial performance, with profits on ordinary activities before the impact of FX and tax reaching $247.1 million (about NZ$371.48 million) (2020: $235.5 million) and a combined ratio of 95.7% (2020: 112.7%), including 15.5 percentage points (pps) of significant losses (2020: 23.7pps).
Meanwhile, its gross written premiums (GWP) totaled $3,238.3 million, a 31.8% jump from $2,424.4 million in 2020 at constant FX rates. In its earnings release, Brit noted that this reflects strong, targeted growth in the company's core direct and reinsurance books and the successful first year of trading for Ki Syndicate (Ki), its first fully digital and algorithmically-driven Lloyd's of London syndicate.
Brit interim group chief executive officer (CEO) Martin Thompson, who took on his current role in early October following the announcement of Matthew Wilson's leave of absence, commented that the company performed well in FY21 due to “continued successful execution against our strategy of leadership, innovation, and distribution”. He also paid tribute to the dedication of the company’s people and the unique culture that Wilson and his team have created across the organization.
“Our clear strategy saw us deliver a combined ratio for the year of 95.7%. This reflected the combination of an excellent attritional ratio, prior-year reserve releases and increased income from our third-party capital management and MGA businesses,” Thompson said. “That we delivered this performance despite exposure to a number of major loss events and the continued impact of COVID-19 was particularly encouraging, demonstrating the increased resilience of our business and our firm focus on disciplined underwriting.”
Brit also invested in data and technology during FY21, including significant milestones in claims, using data to empower its lead underwriters, and its plans to appoint a chief technology officer and a chief data officer in January 2022.
For the 2022 financial year, Brit remains optimistic despite the remaining uncertainty around COVID-19, rising inflation, and the potential for the increased frequency and severity of major loss events.
“Ongoing rate rises, continued improvement in our attritional claims ratio, and our clear strategy give us confidence that Brit is well placed to respond to the opportunities and challenges ahead,” Thompson said.
