Brit Restricted chalks up 2020 losses
Brit’s income statement for the past year also shows an underwriting loss of $ 215 million. In 2019, the corresponding amount was an underwriting profit of $ 68.4 million.
Regarding the coronavirus crisis, the company stated: “The financial impact on Brit has been significant. Claims of $ 270.7 million related to COVID-19 were reported with significant losses during the reporting period.
“These losses led to an increase in our combined ratio of 15.9 percentage points (pps). COVID-19 has primarily impacted our contingency (event cancellation) and accident contract books. “
Non-pandemic events such as Hurricanes Laura, Sally and Zeta, and the Nashville tornadoes and riots in the US also dealt a blow.
“The net impact of claims from these pre-reinstatement events on Brit was $ 132.5 million, or 7.8 percentage points, on the combined ratio,” the insurance group said. “Although they are individually moderate, they add up to a significant sum that is well above average expectations.
“These events have hit insurance lines and less populated areas outside of the prime areas disproportionately. As a result, we have seen a higher exposure to our coverholder business, which is deliberately weighted around these exposures and offsets the overall real estate account. “
Brit’s combined ratio in 2020 was 112.6%. Without the losses related to COVID-19, it would have been 96.7%.
Commenting on the results, the group’s chairman, Matthew Wilson, said, “We achieved risk-adjusted rate increases of 10.6%, with almost all classes contributing to the increase. This corresponds to a total increase of 20.2% since January 01, 2018.
“In this environment of positive interest rates, we increased our written premium further to $ 2,424.4 million. During the reporting period, we also achieved a wear rate of 52.6%, an improvement of 2.4 percentage points. This reflects underwriting discipline, strict risk selection and rate increases. “
Wilson, meanwhile, also praised the way everyone at Brit had responded and excelled at serving clients.
“Looking ahead to 2021,” he continued, “against a challenging backdrop, there are a number of indicators that give cause for optimism, including rate hikes, the withdrawal of capacity in the market from certain classes and our improvement in wear and tear. ” Loss ratio. “