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Highlights

Full Year results for the Year ended 31 December 2020

Key points

  • Gross written premiums of US$2,424.4m (2019: US$2,293.5m), a 5.7% increase (5.6% at constant FX rates).
  • Risk adjusted premium rates increases on renewal business of 10.6% (2019: 5.9%), bringing the total increase since 1 January 2018 to 20.2%.
  • Net earned premium1 of US$1,713.9m (2019: US$1,638.5m), an increase of 4.5% at constant FX rates.
  • Attritional ratio of 52.6%, an improvement of 2.4 percentage points (pps) (2019: 55.0%), with most classes showing a strong underlying performance.
  • Combined ratio>1,2 of 112.6% (2019: 95.8%), including 15.9 pps of COVID-19 relates losses and 7.8pps of other major losses (2019: 3.6pps).
  • Combined ratio1,2 excluding COVID-19 related losses of 96.7%.
  • Return on invested assets3 after fees of US$45.5m or 1.0% (2018: US$148.1m or 3.6%).
  • Loss on ordinary activities before the impact of FX and tax of US$233.7m (2019: profit of US$183.0m).
  • Loss after tax of US$232.0m (2019: profit of US$179.9m).
  • Balance sheet remains strong: adjusted net tangible assets4 of US$1,436.8m (2019: US$1,150.4m).
  • Capital surplus of US$341.0m (2019: US$348.9m) and a strong capital ratio5 of 122.1% (2019: 128.4%).
  • We have continued to focus on our ‘Leadership, Innovation, Distribution’ strategy, including:
    • Launch of Ki, the first fully digital and algorithmically-driven Lloyd's of London syndicate;
    • Launch of a direct pay claims facility in collaboration with Visa and Vitesse; and
    • Sponsorship of a US$300m catastrophe bond via Sussex Capital UK PCC Limited.

Capital Strength

Brit's capital policy is set by the Board and is based on the output of the internal model which reflects the risk profile of the business. The policy requires capital to be held well in excess of regulatory minimum requirements and underpins Brit’s balance sheet strength. The policy ensures the capital adequacy of the Group, and each entity, through an efficient capital structure. The Group proactively responds to developments in the financial environment to ensure its capital strength is maintained whilst optimising risk-adjusted returns.

Brit is part of the Fairfax Group, which is a large Canadian insurance group with significant financial strength.

Brit Global Specialty solely underwrites through Brit's wholly aligned Lloyd’s Syndicate 2987, which benefits from the Lloyd's credit ratings of A (Excellent) from A.M. Best, AA- (Very Strong) from Fitch and A+ (Strong) from Standard & Poors. For further information, please visit Lloyd's of London.

Capital Strength

DB Pension Scheme

Through Brit Group Services Limited, the Group operates a funded defined benefit pension scheme, providing pensions benefits to its members. The scheme closed to new entrants on 4 October 2001 and closed to future accrual of benefits on 31 December 2011. The scheme is approved by HMRC for tax purposes and is subject to UK regulations overseen by the Pensions Regulator. The scheme is operated through a trust, which has assets held separately from the Brit Group. The trust is managed by a corporate Trustee, Brit Pension Trustee Ltd, whose board includes a professional independent trustee. The Trustee has overall responsibility for payment of the benefits and management of the scheme’s assets.

The scheme’s Statement of Investment Principles can be found here.

Any questions related to the scheme should be addressed to the scheme’s administrators, Lane Clark & Peacock LLP (Team-BritGroup@lcp.uk.com).

DB Pension Scheme

S172(1) Statments

Brit Limited, and a number of its UK subsidiaries, are required to publish a Section 172 (1) statement under the Companies (Miscellaneous Reporting) Regulations 2018. The statements for the year ended 31 December 2019 can be found by following the links below.

S172(1) Statments