Marco Capital reports pre-tax profit for 2023 but motor claims dent technical result

Marco Capital Holdings Limited, a European provider of legacy solutions to the non-life insurance and reinsurance market, has reported a pre-tax profit of $51.4 million for the full year 2023, an improvement from the loss of $18.8 million seen a year earlier, although the firm has still reported a technical loss of $8.4 million for the year.

Marco provides legacy business solutions to insurance and reinsurance undertakings. The firm’s activities relate to the acquisition and management of insurance and reinsurance firms and/or portfolios in run-off, so reserves is the focus more so than premiums, in some respects.

For 2023, the Group’s gross reserves stand at $501.6 million and net reserves at $442.7 million, up from $329.4 million and $290.9 million, respectively, in 2022.

Year-on-year, net written premium increased significantly, from $12.3 million in 2022 to $123.4 million in 2023, driven by strong growth in motor, which accounted for the large majority of the year’s premium.

Net premium earned rose from $20.7 million in 2022 to $123.6 million in 2023, again driven by the growth in the motor line of business.

But as premiums rose, so too did claims incurred, net of reinsurance, for the legacy player. Last year, claims incurred totalled $8.5 million, but this has risen substantially to $102.7 million for 2023, with $86.3 million of this total coming from the motor line.

During 2023, motor was the only line of business that generated a technical profit, at $37,301, but this was more than offset by losses in Marine, aviation and transport, Fire and other damage to property, General liability, and Credit and suretyship.

The Group currently has GAPEE gross technical liabilities of $501,584, up from 2022’s $329,439, and net technical liabilities of $442,711, compared with 2022’s $290,867.

“Technical Liabilities have increased in 2023 due to the acquisition of Marco International Insurance Company Limited and Kelvin Re Limited in addition to the completion of a significant LPT reinsurance deal by Syndicate 1254,” says the firm.

On the asset side of the balance sheet, Marco has reported a net total investment return of $27,757, a stark improvement on the loss of $3,234 seen in 2022.

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