REG - Brit Group Holdings - Annual Financial Report

Lloyds BankingAnnouncement

28/02/2025 08:15

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RNS Number : 8669Y  Brit Group Holdings Limited  28 February 2025

 

 

 

 

Brit LIMITED
 
 

PRESS RELEASE

28 February 2025

results for the Year ended 31 December 2024

 

A strong performance underpinned by a clear strategic focus

 

Key points

 

·      Group profit before tax from continuing operations of $661.0m
(2023: $623.9m).

·      Group profit after tax from continuing operations of $576.2m
(2023: $629.2m).

·      Return on net tangible assets on continuing operations of 23.5%
(2023: 41.7%), primarily reflecting the increased level of adjusted net
tangible assets held during 2024.

·      Combined ratio for continuing business after discounting of 75.7%
(2023: 76.2%) and an undiscounted combined ratio for continuing business of
85.9% (2023: 85.3%).

·      Insurance service result was a profit of $674.8m (2023:
$649.5m).

·      Insurance premium written for 2024 of $3,779.5m, an increase of
0.5% over 2023 ($3,753.5m) at constant rates of exchange.

·      Investment return was a strong $347.7m or 5.0% (2023: $394.4m or
6.2%).

·      Capital position remains strong, with a surplus over management
entity capital requirements of $987.5m or 53.0% (2023: $1,050.5m or 54.5%),
after dividend payments in the year of $605.4m. A significant proportion of
our investment portfolio remains invested in cash and fixed income securities
(2024: 84.5%; 2023: 85.8%).

·      Overall risk adjusted rate decrease of 1.4% (2023: increase of
7.1%).

·      Key developments include:

o  Ki established as a standalone operation within the Brit Limited and
Fairfax groups following highly successful launch and incubation by Brit;

o  Focus on underwriting capability development, including new strategic
pricing and rating engines for a number of classes;

o  Launch of Brit Re, the strategic expansion of our Bermuda presence;

o  Successful first year of Ki's enhanced offering allowing brokers to access
third-party digital capacity from multiple syndicates directly through the Ki
platform;

o  Ki franchise growth: Overall insurance premium written by the Ki
franchise, on behalf of Ki Syndicate 1618 and third parties, grew by 16.6% to
$1,039m;

o  Launch of the 'BUILD Project Cargo' and 'Cyber First50' consortia;

o  Completion of the sale of our holding in Canadian MGA Sutton;

o  Continued focus on our customers through claims innovation; and

o  Continued focus on our digital, data and AI strategy.

 

Martin Thompson, Group Chief Executive Officer, commented:

 

'I am pleased to report a strong performance for 2024, with an undiscounted
combined ratio of 85.9%, a discounted combined ratio of 75.7%, and a profit
before tax from continuing operations of $661.0m. The excellent underwriting
and investment results we have delivered reflect our clear strategic focus on
driving performance and profitability.

 

Positive market conditions have continued during 2024, with compound increases
since 1 January 2018, the last low point in the cycle, of 62.8%.  However, we
are also seeing markets becoming more challenging, with increased competition
and rate reductions in a number of classes, resulting in overall rate
reductions of 1.4%. Against this backdrop we have continued to be highly
disciplined and focused on underwriting profitability.

 

Building on Brit's position and reputation as a lead market is an essential
priority and we are more active than ever in influencing and shaping the
market, driving terms and price across all lines that merit focus. This is a
testament to the high quality of our underwriting and claims teams and our
sharpened focus on developing market leading underwriting capability.  Our
strong broker relationships remain a fundamental enabler, while we have also
made good progress with our investment in digital and data-enabled
capabilities, having delivered the foundational phase, a cloud-native modern
data platform.

 

 

 

 

 

Our aspiration for the Group is to be a long-term winner in the Lloyd's
market, supported by our clear strategic focus on lead underwriting to drive
sustainable performance and profitability. Our 2024 results reflect another
year of strong performance and show we have the foundations from which to
achieve this through Syndicate 2987, a highly relevant lead market.  In 2025
we will continue to invest in our technology strategy, broker relationships
and underwriting capabilities to build on our established leadership
positions, while retaining our long-term focus on careful management of the
insurance cycle.

 

We remain mindful of shifting market dynamics, and the challenges faced by our
customers and the industry, as illustrated by the recent California wildfires.
The human impact of such events is significant and our thoughts are with those
affected.   They also remind us of the role of insurance in helping
businesses and individuals navigate a complex and ever-changing risk
environment. Our diversified and balanced portfolio makes us well placed to
support our customers through Brit's underwriting and claims expertise. This,
together with our strategy and unique culture, gives me great confidence in
the outlook for Brit.'

 

 

Brit Limited's 2024 audited Annual Report

 

Brit Limited's 2024 audited Annual Report is available at
www.britinsurance.com (http://www.britinsurance.com) .

 

 

For further information, please contact:

 

 Antony E Usher, Group Financial Controller, Brit Limited  +44 (0) 20 3857 0000
 Edward Berry, FTI Consulting                              +44 (0) 20 3727 1046
 Tom Blackwell, FTI Consulting                             +44 (0) 20 3727 1051

 

 

 

Disclaimer

 

This press release does not constitute or form part of, and should not be
construed as, an offer for sale or subscription of, or solicitation of any
offer or invitation or advice or recommendation to subscribe for, underwrite
or otherwise acquire or dispose of any securities (including share options and
debt instruments) of the Company nor any other body corporate nor should it or
any part of it form the basis of, or be relied on in connection with, any
contract or commitment whatsoever which may at any time be entered into by the
recipient or any other person, nor does it constitute an invitation or
inducement to engage in investment activity under Section 21 of the Financial
Services and Markets Act 2000 (FSMA).  This document does not constitute an
invitation to effect any transaction with the Company or to make use of any
services provided by the Company.  Past performance cannot be relied on as a
guide to future performance.

 

 

Brit at a Glance

 

Brit is a market leader in global specialty insurance and reinsurance, writing
a broad range of commercial insurance.  Brit is a highly regarded and an
influential name in the Lloyd's market and we pride ourselves on our
specialist underwriting and claims expertise.

 

We operate globally via a combination of our own international distribution
network that benefits from Lloyd's global licences, and through our broker
partners.  Our underwriting capabilities are underpinned by a strong
financial position, our underwriting expertise and discipline and customer
service, enhanced by a data led approach and strong focus on innovation.

 

We have a strong track record and are passionate about our business, our
people and our clients and we have focused on cultivating a franchise that is
built on delivering exceptional service.  Our culture is centred on
achievement, and we have established a framework that identifies and rewards
strong performance.

 

Brit is a member of the Fairfax Financial Holdings Limited group of companies
(Fairfax).  The Fairfax financial result for the year ended 31 December 2024,
published on 14 February 2025, includes the Brit financial result.

 

www.britinsurance.com (http://www.britinsurance.com)

 

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