Meanwhile, its net earned premium spiked 43.9% from last year’s $876 million to $1,249.0 million this year. Brit’s attritional ratio of 51.7% showed an improvement of 1.5pps (compared to H1 2021’s 50.2%), with most classes showing a strong underlying performance. It highlighted that Ki (its digital and algorithmically-driven Lloyd’s of London syndicate) continued its success, maintaining its growth trajectory with $342.9 million of GWP recognized in the six months.
Brit’s combined ratio of 91.6% was a healthier showing than H1 2021’s 95.5%, and included 3.2pps of Ukraine-related losses (H1 2021: 1.3pps of COVID-19 related losses), no other major losses (H1 2021: 9.3pps) and reserve movements of 0.7pps (H1 2021: (4.7)pps).
On the investment side, Brit saw a dip with its return on invested assets after fees of $233.4 million negative for H1 2022, representing a non-annualized return of -4.3% (compared to H1 2021’s positive return of $168.9 million/+3.4%). This included $221.8 million of unrealized losses.
Brit’s operating loss (before the impact of FX and tax) stood at $166.0 million in H1 2022, compared to a profit of $208.6 million in 2021. Its loss after tax hit $186.9 million for the period, compared to a profit of $204.3 million in the same period last year.
Commenting on the results, Martin Thompson, Brit’s interim group CEO said the group was pleased to report an excellent underwriting result for H1 2022 and its combined ratio of 91.6%. This, he said, was testament to Brit’s focus on underwriting performance, sustained by its emphasis on great client service as well as its continued investment in innovation and data.
“With market volatility, rising inflation and the devastating invasion of Ukraine, the first half of 2022 has presented numerous and significant risks for our clients, and going into the second half of 2022 many of these risks and uncertainties will persist,” he added. “However, we continue to see favorable pricing developments and this, alongside Brit’s strong financial position, means we are well placed to navigate this climate, and support clients in managing and protecting themselves against these and any other emerging risks.”
Looking to the future areas of focus for the business, Thompson noted that alongside supporting clients in navigating this challenging landscape, the remainder of 2022 will also see Brit continue to push progress in several of the areas that matter most to the group and its employees – technology and innovation, and inclusion and diversity.
“The coming six months will see us further build and enhance our innovative and data-driven underwriting platform,” he said, “while also continuing to foster and support an inclusive and diverse culture at Brit.”