Global reinsurer MS Reinsurance reported a net profit of $366 million for 2023, marking a significant turnaround from a net loss of $50 million in 2022.
The announcement followed the release of parent company MS&AD’s worldwide financial results for the full year 2023.
MS Reinsurance reported a net profit after tax of $366 million, driven by favorable non-catastrophe experience across the portfolio, equity returns in line with wider market performance, and higher than planned returns on liquid assets.
The net profit was also aided by a one-time tax impact of $93 million stemming from the recognition of deferred tax assets in anticipation of the revision of the corporate tax system in Bermuda. Excluding one-off impacts, the net profit was $273 million.
Gross written premiums increased by 34% compared to the 2022 financial year, reaching $3.1 billion. This growth occurred in segments where market conditions remained favorable and in areas that successfully aligned with the strategic approach for diversification and increased profitability, notably in European property and casualty, agriculture, and US casualty lines of business.
Read More: MS Reinsurance appoints new board directors
The combined ratio improved from 98% in 2022 to 90.5% in 2023, despite another year of significant loss activity for the reinsurance market. The normalized combined ratio, excluding the impact of large loss events in excess of budget, was 88% in 2023, compared to 98% in 2022.
Following MS Reinsurance’s strong performance in 2023 and the explicit support from MS&AD in the form of a parental guarantee, the company was also recently upgraded by both AM Best and S&P Global Ratings to A+ (stable).
MS Reinsurance CEO Robert Wiest (pictured) commented that 2023 was a watershed year for the company.
“The combination of favorable market conditions and our own client-focused, portfolio approach allowed us to achieve our five-year turnaround goal in just three years, growing our book while continuing to improve the quality of our business. The success of 2023 provided a strong foundation for our ongoing growth and, as we continue to fully modernize our company, prepared us well for the opportunities and challenges in 2024 and beyond,” he said.
What are your thoughts on this story? Please feel free to share your comments below.
