Sompo International posts 96.3% combined ratio for fiscal 2024

By Ryan Hewlett

May 20 - (The Insurer) - Sompo said on Tuesday that its overseas commercial P&C combined ratio improved by 3.2 percentage points year on year to 96.3% for the 2024 fiscal year, while gross written premiums rose 5.8%.

The Japanese group said in a trading update that the combined ratio improvement in its international unit, Sompo International, was driven by prior year reserve strengthening in FY2023, partially offset by a higher expense ratio from increased costs to support business growth.

The division’s commercial P&C operations – built out through its Japanese parent’s 2016 acquisition of Bermudian (re)insurer Endurance – reported gross written premiums of $16.5 billion for the fiscal year.

This was an increase of $912 million, or 5.8%, driven by growth across all segments – particularly Global Markets and SompoRe – and partially offset by lower commodity prices in AgriSompo.

Underwriting income rose to $399 million, up more than fourfold from $67 million in the prior year.

Adjusted profit within Sompo’s overseas insurance and reinsurance business increased by $230 million year on year to $1.38 billion thanks to strong growth in underwriting income and net investment income.

The unit’s net investment income rose $390 million year on year to $1.38 billion, with the increase driven by higher book yields and growth in assets under management.

For parent company Sompo Holdings, adjusted consolidated profit reached 334.3 billion yen ($2.3 billion), up 43.3 billion yen year on year. This was a result of higher underwriting income and net investment income in its overseas (re)insurance business.