Ark reports 83% CoR in 2024 despite high nat cat losses

White Mountains has released full-year results for its property and casualty re/insurance subsidiary, Ark Insurance Holdings Limited, reporting a combined ratio of 83% for the year ended December 31, 2024, compared to 82% in 2023.

According to the firm, Ark’s combined ratio included 13 points of catastrophe losses in 2024, primarily driven by Hurricanes Milton, Helene, Debby, and Beryl, compared to two points of catastrophe losses in 2023.

Ark’s combined ratio also reflected four points of net favourable prior-year development in 2024, compared to two points of net unfavourable prior-year development in 2023, primarily driven by specialty and property lines of business.

Gross written premiums rose to $2.2 billion in 2024, up from $1.9 billion in 2023. Net written premiums increased to $1.6 billion from $1.4 billion, while net earned premiums grew from $1.3 billion to $1.5 billion.

Ark reported pre-tax income of $253 million for 2024, compared to $249 million in 2023. Results included net realised and unrealised investment gains of $50 million, down from $86 million in 2023.

Ian Beaton, CEO of Ark, commented, “Ark had a good quarter and full year, producing combined ratios of 77% and 83%, respectively. Full year gross written premiums were $2.2 billion, up 16% year-over-year, aided by new underwriting teams and products. In November, AM Best affirmed Ark’s ‘A/stable’ financial strength rating. Although the rate environment is moderating, we continue to see opportunities for profitable growth in 2025.”

For the Ark/WM Outrigger segment, the combined ratio rose to 82% for the full year, up from 80% in 2023.

Gross written premiums increased to $2.2 billion from $1.9 billion, while net written premiums rose to $1.7 billion from $1.5 billion. Net earned premiums also grew to $1.6 billion from $1.4 billion.

The firm noted that Ark/WM Outrigger’s exposure to the California wildfires is primarily through its property line of business, with potential for limited specialty and excess casualty claims over time. Ark does not participate in the reinsurance program backing the California FAIR Plan.

At this time, it does not expect wildfire losses to cause full-year 2025 actual catastrophe losses for Ark/WM Outrigger to diverge materially from planned catastrophe losses.

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