Canopius achieves strong underwriting result following Group transformation

LONDON – 29 March 2023 – Canopius Group, a leading global specialty (re)insurer, today announced its financial results for the year ended 31 December 2022.

Highlights include:

  • Group Combined ratio improved to 93.6% (2021:96.7%) underpinned by strong performance across each geographical segment with Combined Ratio in the US & Bermuda of 84%, UK of 96% and APAC of 90%.
  • Gross written premiums increased to $2,338m (2021: $2,220m) with growth seen in all geographies.
  • Attritional loss ratio of 44.3%, including losses from Russia-Ukraine.
  • Loss after tax was $25m (including a negative total investment return of $80m).
  • Targeted growth achieved and a refined underwriting stance in several lines of business.
  • Canopius is confident in its ability to maintain momentum and deliver a strong underwriting performance in 2023.

Neil Robertson, Group Chief Executive Officer, said: “In 2022 Canopius underwent a structured programme of transformation, with meaningful contributions from our colleagues across the Group.

“We set out an ambitious strategy of growth over a three-year period, as a multi-national, multi-platform insurance company across three regional business units, the UK, US & Bermuda, and Asia Pacific.

“In delivering this growth journey, in 2022 we set about ‘resetting’ our operating model. We went through a restructure and ‘transformed’ the business to better align global products and regional expertise to unlock our full potential. These results show the significant progress that has been made and represent a very positive step forward for our Group.

“Our combined ratio of 93.6% is pleasing, particularly when considering the headwinds which our industry has faced this year. We have withstood unprecedented geopolitical uncertainty, macroeconomic turmoil and, like others, our results were impacted by Hurricane Ian.

“The loss after tax of $25m was driven by negative investment return, without which we would have recorded a satisfactory pre-tax profit. A negative investment return of $80m (-2.8%) is due to interest rate increases creating mark-to-market unrealised losses that we expect to unwind into 2023. Our defensive and short duration portfolio leaves us well positioned.

“2022 was challenging, however, we have weathered these challenges while building a better business which is now fully capable of harnessing the power of our talent and technology to unlock innovation, facilitate transition and drive enterprise and stakeholder value. Further, we have made great strides in improving systems and processes and are well positioned for implementation of IFRS17.

“We are now more in control of our own destiny and can reach our goals without needing to rely on a strong economy or further hardening in market conditions.

“We have a business that is well-positioned to take advantage of a continued positive rating environment, and we expect the mark-to-market investment losses to unwind positively in the year. Canopius is very much focused on building a long term sustainable and robust business that benefits all our stakeholders, and delivers on our promises and commitments. We look ahead, confident in our ability to maintain momentum and deliver a strong underwriting performance in 2023.”