Sompo International books 94.2% combined ratio for fiscal Q1
Net income at Sompo International bounced back to a positive result for the three months to 30 June at $35mn, following a year-on-year improvement in both underwriting and investment income at the carrier.
This compared with a loss of $146mn a year ago, which at the time was mainly driven by an increase in unrealised losses on securities.
At a group level, net profit for Sompo Holdings grew 23% to 58.3bn yen ($532mn) for fiscal Q1 following an improvement in profits across most of its divisions, including overseas insurance.
SI underwriting: The combined ratio at Sompo International improved by 1.2 points year on year to 94.2%, driven predominantly by an improvement in the expense ratio. The loss ratio for the quarter increased by 1.9 points to 66.7% mainly due to losses from the Texas winter storms.
The combined result of 94.2% is below Sompo International’s peer group average of 97.0%, Sompo said.
The loss ratio in the insurance business was 72% for fiscal Q1, up 3 points year on year. Within this, the crop insurance loss ratio saw a 16-point improvement to 85%.
The loss ratio in the reinsurance business grew by 1 point to 62%. Within reinsurance, the specialty reinsurance loss ratio swelled by 14 points to 66%, while the loss ratio in cat reinsurance fell by 17 points to 42%.
SI premiums: Net written premiums at Sompo International grew by 21.9% to $2.4bn. Gross written premiums were up by 39.7% year on year to $4.3bn, driven by rate improvement and the growth in crop insurance via the carrier’s acquisition of Diversified.
Overseas insurance: The overseas operations of Sompo Holdings collectively reported an adjusted profit of 17.1bn yen, up 85.9% year on year. This was partly due to an increase in Sompo International’s earned premium base and investment profits, the firm said.