S&P upgrades Convex Group entities to A; Outlook Stable
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GWP reaches $4.2bn and combined ratio of 89.6% achieved in 2023
Published April 18, 2024HAMILTON, BERMUDA, 18 April 2024
Convex Group Limited (“Convex”), the international specialty insurer and reinsurer, today announces its financial results for the year ended 31 December 2023.
Highlights
• Gross written premium: $4,217.6 million, an increase of 39% from $3,035.4 million in 2022.
• Net premium earned: $2,337.1 million, an increase of 39% from $1,686.5 million in 2022.
• Underwriting profit: net combined ratio of 89.6% (2022: 98%).
• Investment return: a positive $240.4 million in 2023, from a loss of $107 million in 2022 due to strong core fixed income returns, driven by high starting yields on the portfolio and a fall in risk–free yields during the last quarter.
• Net profit attributable to common shareholders increased to $503.2 million in 2023, compared to a net loss of $142.2 million in 2022. The 2023 figure includes the establishment of a deferred tax asset of $67.7 million related to the enactment of Bermuda’s corporate income tax. The company achieved its first annual net profit since launch and significantly improved its underwriting result over 2022. As well as anticipated attritional losses, Convex was faced with the complexities of a number of natural catastrophes and man–made events. Losses from these events were in line with expectations given the company’s market share and it benefited from favourable development on prior years.
Convex Group Limited (“Convex”), the international specialty insurer and reinsurer, today announces its financial results for the year ended 31 December 2023.
Highlights
• Gross written premium: $4,217.6 million, an increase of 39% from $3,035.4 million in 2022.
• Net premium earned: $2,337.1 million, an increase of 39% from $1,686.5 million in 2022.
• Underwriting profit: net combined ratio of 89.6% (2022: 98%).
• Investment return: a positive $240.4 million in 2023, from a loss of $107 million in 2022 due to strong core fixed income returns, driven by high starting yields on the portfolio and a fall in risk–free yields during the last quarter.
• Net profit attributable to common shareholders increased to $503.2 million in 2023, compared to a net loss of $142.2 million in 2022. The 2023 figure includes the establishment of a deferred tax asset of $67.7 million related to the enactment of Bermuda’s corporate income tax. The company achieved its first annual net profit since launch and significantly improved its underwriting result over 2022. As well as anticipated attritional losses, Convex was faced with the complexities of a number of natural catastrophes and man–made events. Losses from these events were in line with expectations given the company’s market share and it benefited from favourable development on prior years.
Stephen Catlin, executive chair of Convex Group, said: “2023 was a very successful year for Convex. The scale and market presence we have achieved is nothing short of impressive, I commend the team for their efforts.
“While 2023 was a positive year for many, there is still work to be done. Market conditions and rates have improved significantly, however, 2023 was a quiet year for the North Atlantic hurricane season and many are forecasting a hyper–active 2024. The casualty market is also now experiencing the predicted issues created by reserving deficiency and currently rates are rising.”
Paul Brand, CEO of Convex Group, said: “My colleagues have worked tremendously hard to achieve these results. We launched into a dislocated market in 2019, and the consistent hard work undertaken since then has further built our underwriting capabilities, market relevance, and resilience, allowing us to achieve further growth, whilst continuing to serve our client’s needs.”
