MS Re’s FY’24 Q3 result boosted by strong underwriting and investment performance

MS Reinsurance (MS Re), a global reinsurance provider, delivered strong financial growth in the first nine months of fiscal year 2024, driven by solid underwriting performance, significant premium expansion, and strong investment gains.

MS Re’s underwriting performance remained strong, with insurance service profit rising to $215 million, an increase of $56 million year-over-year.

The company’s combined ratio improved to 90%, down 0.6 percentage points from the previous year’s 90.6%. The firm’s loss ratio increased by 1.7 percentage points to 60%, although this was offset by a 2.3 percentage point decrease in the expense ratio to 30%.

MS Re’s net premiums written grew from $2.4 billion to $2.9 billion, a $542 million increase. Meanwhile, net premiums earned climbed by $442 million, reaching $2.2 billion.

The company’s expense for acquisition and other operating expenses increased from $555 million to $649 million.

Investment income surged from $70 million to $158 million, an $88 million increase, driven by favourable returns in non-duration investment assets and effective asset-liability matching, which helped mitigate discounting volatility.

As a result, financial profit rose to $45 million, up $21 million year-over-year. Ultimately, net income reached $222 million, reflecting an increase of $75 million compared to the prior year’s $146 million.

Looking ahead, MS Re has revised its full-year 2024 forecast with a net income target of $310 million. The company expects an insurance service profit of $256 million, slightly lower than the initial forecast due to a few large loss experiences, including the Baltimore Bridge loss. Despite this, MS Re’s overall financial health remains strong, with an estimated combined ratio of 91.2% for the year.

Today, MS Amlin Underwriting Limited, which includes Lloyd’s Syndicate 2001, Amlin Corporate Member Limited, and AUL Holdings Limited, also reported a strong set of results for the period.

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