Newpoint Reinsurance Company Limited (Newpoint Re) has released its audited financial results for the year ended Dec. 31, 2024, reporting a rise in gross written premium (GWP), net income, and cash reserves.
GWP rose to US$400.9 million in 2024, compared to US$249.4 million in the prior year. Net income reached US$8.444 million, up from US$4.720 million in 2023. The company's cash and cash equivalents totaled US$282.4 million at year end, a significant increase from US$60.6 million the previous year.
Newpoint Re reported total assets of US$768.9 million, reflecting a 47% increase over 2023. Equity rose by 4.4% to US$308 million. The company maintained a combined ratio of 85% or lower and noted that it has paid more than US$160 million in claims since its establishment in 2019.
The company said it continues to expand its global operations in line with its strategy of offering long-term capacity for specialized risks across multiple lines, while keeping exposure to natural catastrophe risk low.
Industry-wide, S&P projected a stable outlook for the global reinsurance sector through 2025, citing pricing discipline and sustained investment yields as supporting factors.
According to S&P, reinsurers are expected to remain capitalized well enough to weather market shifts, with rate adequacy persisting in many segments despite increasing competition from new capacity.
Andrew Bye, executive director of Newpoint Re, said the year-end results mark the continuation of the company’s strategic approach.
“The strategic investment to align our underwriting and actuarial resources is paying back well through the development of underwriting forecast and reserving models, to ensure we write within our available capital,” Bye said.
According to Bye, Newpoint Re is strongly capitalized relative to peers and is positioned to respond to market opportunities in specialist lines with tailored capacity solutions.
Market expectations suggest that reinsurers, including firms like Newpoint Re, may experience a leveling out of growth. Fitch Ratings recently projected that average combined ratios will remain close to 90% across the sector, with return on equity stabilizing around 17%.
While capital positions remain strong, the agency noted that premium growth is likely to moderate due to increased capacity entering the market.
Bye also noted that while 2024 saw growth supported by market conditions, a more moderate pace is anticipated in 2025 due to softening market dynamics and increased competition from new entrants.
“We seek to balance our global footprint by encouraging the development of opportunities in Europe, the Middle East and Africa. We are also excited to be building our brand equity with more announcements to follow in the coming months,” he said.
In line with these market shifts, reinsurance capital has reached record levels. AM Best reported that both traditional and third-party capital combined to push global reinsurance capacity to historic highs at the start of 2025.
This trend, while offering financial resilience across the sector, is also placing downward pressure on rates, as the abundance of capital contributes to a more competitive pricing environment.
What are your thoughts on this story? Please feel free to share your comments below.