Brit Limited has millions of reasons to be merry.
The latest to release its interim results for the six months ended June 30, the global specialty (re)insurer said its profit after tax amounted to US$120.3 million. The figure signifies a massive surge from the US$12.9 million posted in the same period in 2018.
Gross written premium (GWP), meanwhile, grew 5.2% to US$1.2 billion. Commenting on the higher GWP, group chief executive Matthew Wilson cited an increased contribution from Brit’s strategic initiatives of recent years, especially from its US platform as the Fairfax subsidiary continues to expand its overseas distribution capability.
“We have also expanded our core book, reflecting improved market conditions and targeted growth across our treaty portfolio and selected direct classes, partly offset by planned contractions across a number of challenged classes,” noted Wilson. “The growth in our reinsurance book was particularly pleasing, where our highly respected teams have a strong track record.”
According to the Brit boss, they have kept on successfully executing against their “clear, progressive” strategy, further building on the UK-headquartered group’s underwriting discipline, leadership positions, and international distribution footprint.
The underwriter’s combined ratio in the first half of 2019 stood at 94.4%. As for investment return after fees, the figure was at US$94.7 million.
Meanwhile, Wilson also highlighted: “In the period, we continued to invest in businesses with a strong track record in both distribution and underwriting. We completed our acquisition of Ambridge Partners LLC, one of the world’s leading managing general underwriters of complex risks and a key trading partner of Brit for the past 13 years.
“Ambridge, which is based in New York, London, and Frankfurt, will retain its independence and will continue to underwrite on behalf of its existing broad Brit-led consortium of Lloyd’s syndicates and international insurers.”
Brit also made a significant strategic investment in Toronto-based managing general underwriter (MGU) Sutton Special Risk, which specialises in accident and health. According to the CEO, they believe the investment offers attractive exposure to a fast-growing and profitable MGU with a strong presence in Canada and the US.