Specialist insurer and reinsurer MS Amlin has reported an improved but still unprofitable underwriting result of -£197 million for the full-year 2021, as natural catastrophe losses swelled to £296 million, somewhat offset by a much lesser impact from COVID-19.
The underwriting performance does show a £79 million improvement from the loss of £277 million in 2020, reflected in the combined ratio strengthening slightly to 107.4% for 2021 from 109.4% in the prior year.
For 2021, the combined ratio was comprised of a 72.9% loss ratio and a 34.5% expense ratio, compared with 74.8% and 34.6%, respectively, for 2020.
MS Amlin’s underwriting was impacted by some £296 million of losses from natural catastrophes, alongside £13 million of losses related to the COVID-19 pandemic. For 2021, nat cat events that hit the firm include Hurricane Ida, the European floods, and the North American cold wave.
Combined, nat cats and the pandemic cost MS Amlin £309 million in 2021, compared with £482 million in 2020, which was driven by £313 million of COVID-19 related claims.
While losses dented its underwriting in 2021, the MS&AD Holdings subsidiary did grow in the period, with net premiums written increasing by £132 million, year-on-year, to over £2.8 billion. The re/insurer attributes this growth to underwriting expansion on profitable lines and rate hikes.
However, during the same period, net earned premiums fell by £272 million to roughly £2.7 billion in 2021.
On the asset side of the balance sheet, MS Amlin has reported an investment gain of £101 million for 2021, which is down on the £144 million seen in 2020, but still solid.
All in all, MS Amlin has announced a net loss of £190 million for the full-year 2021, compared with a net loss of £222 million for 2020.
