Compre Group Holdings Limited (“Compre”), the Bermuda-domiciled international specialty reinsurance group, today announces its FY 2023 results, the strongest in its 30-year history following a landmark year in which it completed five transactions.
- Gross insurance reserves under management grew by 112% YoY to $1.6bn at the end of 2023 driven by newly acquired reserves of over $1.0bn in the year
- $2.4bn of invested assets benefitting from locking in investment yields at the peak of the interest rate cycle
- Tangible net asset value1 grew by 67% in the year to $784m and operating profit2 of $81m grew by 15% over prior year. Profit after tax was $279m for the year with adjusted operating return on opening tangible equity3 of 19.9%
- Strong capital ratio of 186% well above the minimum capital requirements with continued strong regulatory relationships
- Further support for the business from existing institutional shareholders with additional equity capital committed in 2023
- Three new independent non-executive directors joining in 2023 supporting a strong governance culture
Will Bridger, group CEO, Compre, said: “2023 has been a transformational year for Compre in many respects – we joined a select group of our peers that have closed transactions with reserves in excess of $1bn. Compre continues to invest in its operating platform and has also made significant progress in building out its North American presence.”
“We approach 2024 with an optimistic outlook to build on our success in 2023 and will continue to focus on the mid-market deal segment where pricing and the competitive environment remain attractive. My thanks to the whole team for their hard work and commitment and to the group board, including our institutional shareholders Cinven and BCI, for their continuing support.”
Performance was primarily driven by completion of the SiriusPoint transaction in June 2023 and other portfolios acquired from SUNZ Insurance Company and two further reinsurance deals in Europe comprising motor, German and Italian medical malpractice insurance and other liability lines adding to the overall diversified portfolio of liabilities. In addition, regulatory approval was received for the change of control of Medical Insurance Company DAC, the Irish subsidiary of French mutual insurance group, Covéa.
Invested assets increased by 110% in the period and net investment income more than doubled to $48.7m, benefitting from higher portfolio yields, enhancing our earnings stability and predictability.
Compre remains well positioned as one of a small group of retrospective reinsurers capable of taking on larger portfolios of re/insurance liabilities. The deal pipeline remains active, assisted by the ongoing hard live underwriting market and the increasing demand from clients seeking capital and liability solutions to optimize balance sheets. In addition, the operational platform continues to be an area of focus as we continue to scale our ability to undertake larger and more complex transactions in support of our clients.