Bermuda-based specialty P&C re/insurer Sompo International Holdings has reported adjusted profit of 61.8 billion yen (USD 483.0 million) for the full-year 2021 financial year, up from 31.8 billion yen (USD 248.5 million) last year.
The company mainly attributed its growth to the performance of its commercial P&C business unit, which saw underwriting profit increase by 42.9 billion yen over the year, due to rate increases and an absence of COVID-19 losses.
Investment income on commercial P&C business similarly increased by 13.1 billion yen due to a strong performance in alternative investments, but was offset by one-time negative factors at Sompo Seguros.
Looking ahead to the full-year 2022 period, Sompo International now forecasts its adjusted profit will grow to 100.0 billion yen (USD 781.5 million), led by further top-line growth in SI Commercial P&C and the absence of the Sompo Seguros factors.
Net premiums written by Sompo International in 2021 increased by 268.8 billion yen to 1,007.1 billion yen, mainly due to rate improvement and growth in crop insurance.
For 2022, the company now expects to report net premiums written of 1,180.1 billion, with further growth due to continued rate increases and an increase in retention for its commercial P&C business.
Sompo International’s underwriting income increased significantly from just $58 million to $426 million in 2021, with 2022 income now forecast at $759 million.
This was reflected in its combined ratio, which improved by 3.9 percentage points over the year to 93.9%, with a further 3.2 percentage point improvement predicted for the coming year.
The performance of Sompo International also contributed to improved results at its parent company, Sompo Holdings, which reported an 82.3 billion yen increase in net income and 292.1 billion yen of growth in net written premiums.