Canopius reveals full-year 2022 financial results

GWP up after transformative period

Canopius reveals full-year 2022 financial results

Insurance News

By Mia Wallace

The global specialty (re)insurer Canopius Group, has today posted its financial results for the year ended 31 December 2022.

Among the figures recorded for the full-year period, the firm revealed that gross written premiums (GWP) increased to US$2,338 million (up from US$2,220 million in 2021) with growth seen in all geographies. Its group combined ratio improved to 93.6% (down from 2021’s 96.7%). This was credited to its strong performance across each geographical segment, with:

  • A combined ratio of 85% in the US & Bermuda
  • A combined ratio of 96% in the UK and
  • A combined ratio of 90% across APAC

Meanwhile, the group reported an attritional loss ratio of 44.3%, including losses from Russia-Ukraine and a loss after tax of US$25 million (including a negative total investment return of US$80 million).

Discussing the results, Neil Robertson (pictured), group CEO said: “In 2022 Canopius underwent a structured program 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.”

Robertson noted that Canopius has reset its operating model by delivering this growth strategy, transforming the business to better align global products and regional expertise to unlock its full potential. These results show the significant progress that has been made, he said, and represent a positive step forward for the group.

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

“The loss after tax of US$25m was driven by negative investment return, without which we would have recorded a satisfactory pre-tax profit. A negative investment return of US$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, the group CEO said, but Canopius has weathered those challenges and is now, “more in control of [its] own destiny” and able to reach its 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,” Robertson said. “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.”

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