International specialty reinsurance group Compre Group Holdings Limited has reported its financial results for 2023, marking the strongest performance in the company’s three-decade history.
Gross insurance reserves under management surged by 112% year-over-year, reaching $1.6 billion by the end of 2023, largely due to newly acquired reserves exceeding $1 billion. Invested assets totaled $2.4 billion, benefiting from locking in investment yields at the peak of the interest rate cycle.
Tangible net asset value increased by 67% to $784 million, and operating profit grew by 15% to $81 million. Profit after tax stood at $279 million, with an adjusted operating return on opening tangible equity of 19.9%.
The company maintained a strong capital ratio of 186%, well above the minimum requirements. Meanwhile existing institutional shareholders provided further support with additional equity capital commitments in 2023.
Group chief executive Will Bridger (pictured) commented: “2023 has been a transformational year for Compre in many respects – we joined a select group of our peers that have closed transactions with reserves in excess of $1 billion. Compre continues to invest in its operating platform and has also made significant progress in building out its North American presence.”
Looking ahead to 2024, Bridger expressed optimism, emphasizing plans to build on the 2023 success and focus on the mid-market deal segment, where pricing and the competitive environment remain favorable. He acknowledged the dedication of the team and the support from the group board and institutional shareholders Cinven and BCI.
The year’s performance was significantly driven by the completion of the SiriusPoint transaction in June 2023 and acquisitions from SUNZ Insurance Company, along with two additional reinsurance deals in Europe covering motor, German and Italian medical malpractice, and other liability lines. Regulatory approval was also received for the change of control of Medical Insurance Company DAC.
Invested assets saw a 110% increase, with net investment income more than doubling to $48.7 million due to higher portfolio yields, enhancing earnings stability and predictability.
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