Brit releases latest financial results

Global specialty insurer and reinsurer Brit Ltd (Brit) has released its full-year results for the year ended December 31, 2022 (FY22).

Brit’s gross written premium (GWP) totalled $3,970.0 million for FY22, up 24.7% from $3,238.3 million in the 2021 financial year (FY21). It also reported a combined ratio of 96.6% (up from 95.7% in FY21) and an underwriting profit of $95.4 million (up from $90.6 million in FY21).

Other key points for FY22 include the following:

• Risk-adjusted premium rate increases on renewal business of 12.4% (2021: 12.9%), a compound increase since January 1, 2018, of 54.1%;
• Strong full-year attritional ratio of 51.0% (2021: 47.7%);
• Capital position remains strong, with capital surplus increasing to $709.8 million (2021: $617.9 million) and a strong capital ratio of 152.8% (2021: 139.1%); and
• A highly successful second year of trading for Ki, with GWP of $834.1 million (2021: $395.6 million), an increase at constant FX rates of 115.4%, and a combined ratio of 99.4%.

Brit’s business developments for the year ended December 31, 2022

For FY22, Brit’s key developments include the following:

• Agreed to sell Brit’s Ambridge MGA companies to Amynta Group;
• Executed its catastrophe strategy;
• Relaunched its data and digital strategy, supported by its new CTO and CDO; and
• Continued to focus on its customers through claims innovation, including deploying an algorithm to enable a faster claims response following Hurricane Ian, and by launching the Direct Pay payment solution in the US.

Commenting on the latest financial results, Brit group CEO Martin Thompson said: “In a year that saw significant losses arising from natural catastrophes and the Ukraine crisis, this is a robust result and testament to our underwriting discipline, further evidenced by our healthy attritional ratio.

“The major loss events of 2022 bought into sharp focus the crucial role insurance plays in times of crisis, and our ability to deliver a best-in-class claims service continues to be a core focus. We have supported our clients when they need it most, with innovation at the heart of our claims approach. In the immediate aftermath of Hurricane Ian, using our proprietary machine learning algorithm in tandem with ultra-high-resolution aerial imagery, we were able to make our first claim payments one week after the event.”

Brit’s goals for 2023

Brit will prioritise its technology and data strategy in 2023 to help it become a lead underwriter.

“This strategy will see us deliver an innovative, data-driven, and technology-enabled platform that empowers our underwriting and claims teams to thrive,” Thompson said.

Thompson noted several challenges and uncertainties the insurance industry faces due to volatile geopolitical and economic landscapes, including ongoing inflationary pressures.

“Wider challenges also continue to exist, such as the potential for increased frequency and magnitude of major loss events, excess capacity, the cost of doing business in the London Market, and increased competition,” he continued. “However, against this backdrop, we believe Brit is uniquely placed. We have an enviable scale and reputation as a lead market, a clear digital and data strategy that will make us more efficient and easier to do business with, and a proven commitment to investing in innovative solutions that improve outcomes for our customers. Underpinning this is a differentiated culture and some of the industry’s best talent; taken together, we are excited about how Brit is positioned to respond to the opportunities and challenges ahead.”