Press release
3rd June 2024
Compre reports record results
in 'landmark' year
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.
- Ends -
Notes
1
Tangible Net Asset Value excludes goodwill and
other intangible assets from the net asset value. The figure shown
is based on all signed deals as at the end of the period including
signed deals which are yet to be completed.
2
Operating profit refers to profit before tax
adjusted for items outside the control of the management team such
as mark to market movement on investments, discounting on
liabilities, currency related movements and other non-recurring
items. The figure shown is based on all signed deals in the period
including signed deals which are yet to be completed.
3
Adjusted Operating Return on Tangible Equity is
calculated based on the operating profit for the year as a
proportion of the opening TNAV. The opening TNAV is adjusted for
the same items as operating profit to aid a like for like
comparison.
For
further information please contact:
Compre
David Haggie / Richard Adams / Olivia
Thomson, Haggie Partners
+44 20 7562 4444
About Compre:
Compre is a global specialty
reinsurer providing capital and liability solutions for its clients
giving certainty to prior year development. It has over 30
years of experience in the acquisition and management of
discontinued and prior year non-life insurance and reinsurance
portfolios. Compre has experience of acquiring most classes of
direct and reinsurance business, including general liability,
marine and motor liability, and US APH and workers' compensation.
Compre has operations in Bermuda, Finland, Germany, Ireland, Malta,
Switzerland, the UK, the USA and at Lloyd's of
London.
www.compre-group.com
Cautionary note on forward-looking
statements
This announcement may contain
forward-looking statements. All statements other than statements of
historical fact included in this announcement are forward-looking
statements. Forward-looking statements express the Issuer's current
expectations and projections relating to its financial condition,
results of operations, plans, objectives, future performance and
business. Such forward-looking statements are based on numerous
assumptions regarding the Issuer's present and future business
strategies and the environment in which it will operate in the
future. No representation is made or will be made that any
"forward-looking" statements will be achieved or will prove to be
correct. Actual events or conditions may differ materially from
such assumptions. Similarly no representation is given that the
assumptions disclosed in this announcement upon which
forward-looking statements may be based are reasonable. Past
performance is not a reliable indicator of future performance. The
recipient acknowledges that circumstances may change without notice
and the contents of this announcement may become outdated as a
result.