MS Reinsurance’s 2023 profit soars to $366m as CoR improves

MS Reinsurance has revealed that against a backdrop of significant loss activity, continued inflation and geopolitical uncertainties, it still produced a net profit of $366 million for the full year 2023, much improved from a net loss of $50 million in 2022.

Profits in 2023 were reportedly driven by favourable non-cat experience across the portfolio, equity returns in line with the wider market performance and higher-than-planned returns on liquid assets.

“Net profit was also aided by a one-time tax impact of $93m stemming from the recognition of deferred tax assets in anticipation of the revision of the corporate tax system in Bermuda,” MS Reinsurance said.

The firm’s gross written premiums in 2023 were up, increasing in absolute terms by 34% relative to 2022, hitting $3.1 billion.

According to MS Reinsurance, this growth was seen in segments where market conditions remained favourable and in areas that successfully aligned the strategic approach for diversification and increased profitability, notably in European property and casualty, agriculture, and US casualty lines of business.

Net premiums written in 2023 also increased, expanding to $2.9 billion from $2 billion in 2022.

Meanwhile, MS Reinsurance’s combined ratio improved from 98% in 2022 to 90.5% in 2023.

This occured “despite another year of significant loss activity” for the reinsurance market.

The normalised combined ratio, which excludes the impact of large loss events in excess of budget was 88% in 2023, compared to 98% in 2022.

MS Reinsurance CEO Robert Wiest, commented, “2023 was a watershed year for our company. The combination of favorable market conditions and our own client-focused, portfolio approach allowed us to achieve our five-year turnaround goal in just three years, growing our book while continuing to improve the quality of our business.

“The success of 2023 provided a strong foundation for our ongoing growth and, as we continue to fully modernise our company, prepared us well for the opportunities and challenges in 2024 and beyond.”

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