Global reinsurer MS Reinsurance announced today that it produced a net profit of $366 million for the year ended 2023, a significant turnaround from a net loss of $50 million in 2022. The announcement came on the heels of the release by parent company MS&AD, of the insurance group’s world-wide financial results for the full year 2023.
“2023 was a watershed year for our company.” MS Reinsurance CEO Robert Wiest commented, “The combination of favorable market conditions and our own client-focused, portfolio approach allowed us to achieve our five-year turnaround goal in just three years, growing our book while continuing to improve the quality of our business. The success of 2023 provided a strong foundation for our ongoing growth and, as we continue to fully modernise our company, prepared us well for the opportunities and challenges in 2024 and beyond.”
Following the strong performance of MS Reinsurance in 2023 and the explicit support received from MS&AD in the form of a parental guarantee, the company was recently upgraded by both AM Best and S&P Global Ratings to A+ (stable).
Net profit rises to $366 million ($273 million excluding one-off impacts)
Against a backdrop of significant loss activity, continued inflation and geopolitical uncertainties, MS Reinsurance reported a net profit after tax of $366 million. Profits were driven by favorable non-cat experience across the portfolio, equity returns in line with the wider market performance and higher than planned returns on liquid assets. Net profit was also aided by a one-time tax impact of $93m stemming from the recognition of deferred tax assets in anticipation of the revision of the corporate tax system in Bermuda.
Gross Written Premiums grow to $3.1 billion
Gross written premiums increase in absolute terms by 34% relative to financial year 2022. This growth was seen in segments where market conditions remained favourable and in areas that successfully aligned the strategic approach for diversification and increased profitability, notably in European property and casualty, agriculture, and US casualty lines of business.
Combined Ratio improves to 90%
The combined ratio improved from 98% in 2022 to 90% in 2023, despite another year of significant loss activity for the reinsurance market. The normalised combined ratio, which excludes the impact of large loss events in excess of budget was 88% in 2023 (vs 98% in 2022).
Key Financial Data
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MS Reinsurance is a global reinsurer domiciled in Switzerland with underwriting offices in Zurich, Bermuda, Miami, and New York. The Company underwrites non-life treaty reinsurance solutions on a worldwide basis through its three business units: Americas, International, and Specialty Lines. As part of the world-leading insurance group MS&AD, MS Reinsurance combines reliability and agility to make its clients' businesses stronger. With a drive to move quickly and a commitment to long term partnership, MS Reinsurance supports its partners with the momentum and stability they can build on.