MS Reinsurance bounces back from big loss to $366 million profit in ‘watershed’ year

Global reinsurer and MS Amlin AG company MS Reinsurance returned to profitability in 2023 after a $50 million loss last year, with CEO Robert Wiest describing it as a “watershed” year for the company.

MS Reinsurance posted a net profit of $366 million at the end of 2023, a significant turnaround from the $50 million net loss it suffered in 2022.

It attributed the gains to favorable experiences without catastrophes across the portfolio, stock returns in line with broader market performance and higher-than-planned returns on liquid assets.

The company said profits were also boosted by a one-off tax impact of $93 million resulting from the recognition of deferred tax assets pending the review of Bermuda’s corporate tax system.

Gross premiums increased by 34% in absolute terms compared to fiscal 2022. GWP grew from $2.3 billion at the end of 2022 to almost $3.1 billion at the end of 2023. The company said the growth was driven by favorable market conditions, particularly in the European property and casualty industry, agriculture and the American property and casualty industry.

The combined ratio improved from 98% in 2022 to 90.5% in 2023.

“2023 was a watershed year for our company,” said Robert Wiest, CEO of MS Reinsurance. “The combination of favorable market conditions and our proprietary customer-centric portfolio approach enabled us to achieve our five-year turnaround goal in just three years, growing our portfolio while continuing to improve the quality of our business.

“The success of 2023 provided a strong foundation for our continued growth and, as we continue to fully modernize our business, it has prepared us well for the opportunities and challenges of 2024 and beyond.”

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