Sompo International, a global provider of commercial and consumer property and casualty re/insurance, has reported its first quarter of 2023 financial results, which saw an increased underwriting income of $150m, compared to the same period last year.
This 27% increase, according to the re/insurer, was due to overall top-line growth and combined ratio improvement in SI Consumer. The figure compares to the $11m in underwriting loss reported in Q1 2022.
Net premiums earned in Q2 2023 were $77m, compared to $169m reported in the same period last year. Net losses and loss expenses were $21m, an improvement compared to the $102m in losses reported in Q1 2022.
Sompo also reported that gross premiums written increased from $4.99m in Q1 2022 to $5.3m in Q1 2023. This growth was due to strong reinsurance renewals and increased premiums, partially offset by lower crop price.
Net premiums written increased by $252m, to $3,779m driven by higher retention in North America and growth in Global Markets; top-line exceeds plan in Brazil, Turkey, and APAC in its Global Markets. As well as cotton and other commodity price decline and selective underwriting to improve margins for AgriSompo; and increase in Reinsurance renewals in January mainly in casualty lines.
According to the re/insurer, Q2 2023 net written premiums were affected by retention improvement and continued rate increase mainly in property and casualty lines in its North America Segment;
Combined ratio deteriorated by 1.3pt to 92.4%, compared to Q1 2022 combined ratio of 91.1%. According to Sompo this change was mainly due to growth initiatives investments and increase in expense led by inflation on operating costs.
Its North America segment combined ratio was affected by the expansion of line and less impact of natural disasters; Global Markets was partially affected by the impact of the Turkey–Syria earthquake (approx. $4.8m); AgriSompo by the decrease in Net premiums earned and increase in losses related to the 2022 drought in Texas; and Reinsurance by top-line growth by rate increase.
Net incurred losses related to overseas natural disasters in Q1 2023 was $62m, this includes $18m from Cyclone Gabrielle, $7m from Auckland Flood, and $37m from Other, Sompo stated.
