Sompo Intl. reports stronger P&C combined ratio in FY’23 results

Bermuda-based specialty re/insurer Sompo International Holdings has reported that the financial year 2023 combined ratio for commercial property & casualty (P&C) improved to 91.8% from 92.5%, driven by improved accident year loss ratios and lower catastrophe losses.

The stronger combined ratio is reflected in a rise in underwriting income from $667.3 million in 2022 to $750.2 million in 2023, as growth in Reinsurance and North America more than offset declines in both Global Markets and AgriSompo.

In North America, the firm highlights improved accident year margins and lower catastrophe losses, while the Reinsurance business also benefited from lower nat cat losses.

In fact, across the company, natural disaster losses fell from $553 million in 2022 to $324 million in 2023, driven by U.S. tornados, Cyclone Gabrielle, Hawaii wildfires, European hailstorms, the Turkey earthquake, Hurricane Idalia, and other events.

In terms of top line growth, Sompo International Commercial P&C generated gross written premiums of more than $14.3 billion, which is down slightly on 2022’s $14.5 billion, as growth in Reinsurance, North America, and Global Markets was offset by a decline in AgriSompo.

Net premiums earned rose by $70 million to almost $9 billion, with growth in Reinsurance, North America, and Global Markets more than offsetting a $258 million dip in the AgriSompo business.

Adjusted profit for Sompo’s overseas insurance and reinsurance business hit $1.2 billion, up from $703 million in 2022, which the firm attributes to higher net investment income, improved consumer results, and recording a deferred tax asset that more than offset reserve strengthening.

The firm’s 2023 investment income hit $993 million, nearly double the previous year’s balance due to higher book yields and larger asset balances.

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