Results for the year ended 31 December 2023

A Record Result

Key points

• Group profit after tax (including discontinued operations) of $895.4m (2022: $308.9m).
• Profit on ordinary activities before tax, FX and discontinued operations of $720.3m (2022: $281.3m).
• Return on net tangible assets on all operations of 51.9% (2022: 12.6%) and return on net tangible assets on continuing operations of 41.7% (2022: 12.9%).
• Combined ratio for continuing business after discounting of 76.2% (2022: 88.5%) and an undiscounted combined ratio for continuing business of 85.3% (2022: 96.2%).
• Insurance operating result, excluding the impact of discounting, was a profit of $405.7m (2022: $93.9m), and the result including the impact of discounting was a profit of $423.7m (2022: $492.5m).
• Insurance premium written for 2023 of $3,753.5m, a reduction of 5.5% over 2022 ($3,970.0m) at constant rates of exchange, reflecting market conditions in certain classes, the implementation of our catastrophe strategy, and our continued focus on improving our performance by exiting underperforming business.
• Investment return was a strong $394.4m or 6.2% (2022: loss of $132.1m or -2.3%).
• Result from discontinued operations after tax totalled $266.2m (2022: $21.7m), including the gain on sale of Ambridge of $259.1m.
• Capital position remains strong, with a surplus over management entity capital requirements of $1,050.5m or 54.5% (2022: $709.8m or 39.9%), after dividend payments in the year of $413.6m. A significant proportion of our investment portfolio remains invested in cash and fixed income securities (2023: 85.8%; 2022: 85.1%).
• Highly successful third year of trading for Ki³, recording insurance premiums written of $877.0m (2022: $834.1m), a combined ratio after discounting of 83.2% (2022: 91.1%) and an undiscounted combined ratio of 89.4% (2022: 95.0%).
• Overall market conditions continued to harden, albeit at a reducing rate, and we achieved risk-adjusted rate increases of 7.1%, bringing the compound increase since 1 January 2018 to 65.1%.
• Key developments include:
  • Completion of the sale of the Ambridge MGA companies;
  • Agreement to sell our holding in Canadian MGA Sutton, which completed post year end on 8 March 2024;
  • Execution of our catastrophe strategy, reducing our Property portfolio’s gross exposure to such events;
  • Launch of Ki’s enhanced offering allowing brokers to access third-party digital capacity from multiple syndicates directly through the Ki platform;
  • Continued focus on our customers through claims innovation;
  • Continued focus on our digital, data and AI strategy; and
  • Adoption of IFRS 17 ‘Insurance Contracts’.

Read the full report