Canopius reports 35% GWP growth in Asia Pac amid record global result

APAC hits US$295m in GWP, driven by strong growth in Lloyd's business, accident and health and treaty in Australia, and reinsurance portfolio in Singapore.

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Canopius reports 35 gwp growth in asia pac amid record global result
Canopius reports 35 gwp growth in asia pac amid record global result
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Canopius reports 35 gwp growth in asia pac amid record global result

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(Re)in Summary

• Canopius Group’s GWP for 2023 reached US$2.8bn, a 22% increase from 2022.
• Profits after tax nearly tripled to US$363m.
• In APAC, GWP rose by 34.7% to US$295m.
• APAC growth attributed to Lloyd’s business, strong performance in Australia’s Accident & Health, output from newly acquired treaty underwriters in Australia, and advantageous Singapore reinsurance market conditions.

Canopius Group has announced its financial results for the year ending 31 Dec 2023, with the global (re)insurer seeing a record result, including notable performance from the Asia Pacific region.

Globally, the company’s gross written premiums (GWP) jumped to US$2.8bn, a 22% increase from the year prior, while its profits after tax nearly tripled to US$363m, from US$129m in 2022.

In APAC, Canopius saw its GWP increase 34.7%, from US$219m in 2022, to US$295m last year.

The (re)insurer attributed its APAC regional growth to the robust performance of its Lloyd’s business, which saw strong expansion across various lines of business. The Australian Accident & Health line experienced notable improvement, driven by a rise in travel volumes in 2023. The APAC team also gained from the inaugural year of output from a newly acquired team of treaty underwriters in Australia, alongside advantageous market conditions in Singapore for its reinsurance portfolio.

Globally, net insurance revenue reached US$1.774bn, marking a 10% increase from the previous year’s US$1.612bn result. The (re)insurer also pointed out that a notable rise in insurance contract written premiums occurred in the latter half of the year, so not all of its growth was realised in the 2023 numbers.

Canopius Group’s insurance service expense totalled US$1.757bn. This expense——which encompasses claims paid, adjustments on claims from previous periods, as well as acquisition and underwriting costs for the period—represents a decrease from the previous year’s figure of US$1.802bn.

This reduction was largely attributed to a decrease in significant catastrophe events during the year, especially in the UK and APAC. The total catastrophe loss ratio, which includes impacts from Ukraine, dropped from 11.1% to 4.6% in 2023.

Neil Robertson, Group Chief Executive Officer, commented on the year: “I am delighted with our 2023 results, achieving the strongest underwriting result in our history. Canopius has been able to deliver attractive underwriting profitability and business growth while undertaking major initiatives including adding substantial capabilities to our business.”

He added that the company had a clear vision from which it executed its strategy and was able to deliver attractive and sustainable returns.

Robertson also noted that while 2023’s result was pleasing, Canopius Group’s journey continues in 2024. “We recognise that for us to continue to deliver value to customers and shareholders we must strive for ever greater excellence and consistency,” he said.

The (re)insurer noted that the broader environment remains dynamic and is being driven by several factors, including shifts in reinsurance rate, capacity, terms and conditions, ongoing inflationary impacts in claims and movements in interest yields.

“We look forward with confidence to navigating what 2024 brings and further developing our value proposition to drive consistent performance and build on our success and momentum achieved in 2023,” Robertson concluded.

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