Brit Limited has recorded a strong performance in the first half of 2017 despite difficult market conditions.
The global specialty insurer and reinsurer saw its gross written premiums rise by 0.6% to US$1,092.5 million. It scored a net earned premium of US$740.7 million and a combined ratio of 95.1% with no major loss activity.
Brit delivered a profit on ordinary activities before FX and tax of US$143.8 million and a profit after tax of US$139.7 million. Total value created during the period was US$142.2 million. Adjusted net tangible assets increased 9.1% to US$1,161.2 million after a dividend payment of US$45.8 million in March. The company holds a surplus of US477.2 million (44%) above the Group’s management capital requirement.
“Market conditions have, as expected, remained difficult during the first half of 2017, with Brit experiencing an overall rate reduction of 2.2%, albeit lower than the 3.7% reduction experienced in H1 2016,” said Matthew Wilson, Group chief executive officer of Brit Ltd. “Against this backdrop, we have maintained our rigorous risk selection in the classes experiencing pressure and continue to focus growth efforts in classes experiencing more favourable rating conditions. This strategy, coupled with a relatively benign period in terms of major losses, resulted in a highly respectable combined ratio of 95.1%, after incorporating the effect of Ogden rate changes. Our underlying CoR, excluding the impact of Ogden, was 93.3%.
“Our premiums written grew by 7.9% at constant exchange rates over the same period in 2016, to US$1,092.5m. This was driven by positive back year premium development and our initiatives to broaden our distribution base. We continue to add specialty underwriting talent in targeted areas and in 2017 have strengthened our US program capability and launched a new US cyber and technology team.”
UK-based Brit has presence in the Lloyd’s of London market and has operations worldwide. It specialises in commercial insurance with a strong focus on property, casualty and the energy business. In the first half of 2017, Brit launched Syndicate 2988, a specialist underwriting unit supported by third party capital.
Mark Cloutier, Group executive chairman of Brit Ltd, commented: “Brit has delivered a strong performance in the first half of 2017. Our non-annualised return on adjusted net tangible assets before FX, which we see as a key indicator of our performance, was 12.6%. This was driven by the combination of a healthy contribution from underwriting results, notwithstanding very challenging market conditions, and an excellent performance from our investment portfolio. It is very pleasing to see the continued profitable growth of the new underwriting initiatives launched in recent years.
“We believe that our performance shows that we have the right operating model, underwriting approach and corporate culture, to not only operate successfully through the current difficult market conditions but to also be ready to take full advantage of emerging opportunities when trading conditions begin to improve, as the results of the current lack of market discipline starts to bite hard on sector results.”
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