Strong Financial Growth and Profitability in 2024
Specialty and property & casualty insurer and reinsurer, Canopius, has announced an impressive group undiscounted combined ratio of 90.2% for the full year 2024. This marks a slight rise from the 88.7% recorded in 2023. Additionally, the insurance contract written premium witnessed a substantial 26% year-on-year increase, reaching $3.53 billion, up from $2.8 billion in the previous year.
Continued Momentum in Premium Growth
Canopius attributes this remarkable 26% premium growth in 2024 to a strong performance across various products and geographies, building on the 22% growth seen in 2023. The company delivered a record-breaking result with a return on equity of 28%. Profit after tax saw a 10% increase, reaching $401.3 million, compared to $363.4 million in the prior year.
Enhancements in Financial Metrics
The firm’s Tangible Net Asset Value rose by 25%, reaching $1.81 billion in 2024, up from $1.45 billion in 2023. Canopius also reported a net insurance revenue of $2.26 billion, representing a 28% increase from $1.77 billion in 2023. Although the undiscounted combined ratio slightly increased, the discounted combined ratio was 84.1% in 2024, a minor increase from the previous year’s 83.9%.
Healthy Loss Experience and Investment Returns
Canopius notes that its attritional loss experience remains robust, supported by a solid underlying accident year performance and favorable prior year development. The return on Opening Tangible Equity for 2024 was reported at 27.7%, slightly down from 32% in 2023. The company’s total net investment return for 2024 stood at 5.4%, amounting to $193.8 million, up from $173.1 million in 2023.
Strengthened Balance Sheet and Strategic Focus
With a strengthened balance sheet, Canopius reports a 31% rise in capital surplus over its capital requirements, reaching $651.3 million. Neil Robertson, Group Chief Executive Officer, expressed his satisfaction with the 2024 results, emphasizing the company’s consistent track record of returns and its strong strategy and team poised for profitable growth and attractive shareholder returns.
Looking Ahead to 2025
Despite anticipating a more challenging environment in 2025, Canopius is confident in its ability to build on its current momentum. The company remains optimistic about its future prospects, with plans to implement a refreshed three-year plan, maintain a successful underwriting strategy, and strengthen its financial foundation. “Our priorities for 2025 are to continue focusing on our successful underwriting strategy and philosophy and build on our strong financial base,” adds the company.
