Brit Limited announced strong financial results for 2024, as outlined by CEO Martin Thompson, who also detailed the company’s strategic plans for the future.
Financial Performance
In 2024, Brit Limited reported a pre-tax profit from continued operations of $661 million, an improvement from the $623.9 million reported in 2023. This increase was partially driven by a rise in pre-tax profit during the first half of the year. The after-tax profit from continuing operations was $576.2 million, a decrease from the $629.2 million the previous year. Despite this slight decrease, the company demonstrated a healthy return on net tangible assets from continuing operations, which stood at 23.5%. This result reflects an increase in the level of adjusted net tangible assets held during the year.
The combined ratio for continuing business after discounting was 75.7%, with an undiscounted combined ratio of 85.9%. Insurance service results generated a profit of $674.8 million. Gross written premium for the year totaled $3.78 billion, up from $3.75 billion in 2023.
Brit’s capital position remains robust, with a surplus over management entity capital requirements of $987.5 million, or 53%, even after paying dividends totaling $605.4 million. The company’s investment portfolio is still heavily allocated to cash and fixed-income securities, representing 84.5% of total investments.
Key Developments in 2024
Last year, Brit expanded its operations in Bermuda with the launch of Brit Re, a move that highlights the company’s commitment to strategic growth. The company has also actively worked to enhance its underwriting capabilities, including the introduction of new strategic pricing and rating engines. In December, AM Best reaffirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) for Brit Reinsurance (Bermuda) Limited (Brit Re). The ratings reflect the unit’s strong balance sheet and limited business profile. The outlook for both ratings remains stable.
Brit also launched the “BUILD Project Cargo” and “Cyber First50” consortia and completed the sale of its holding in Canadian MGA Sutton during the year. In addition, Ki, which now operates as a standalone entity, has expanded its platform, allowing brokers to access third-party digital capacity from multiple syndicates. Ki’s written insurance premium also saw significant growth, rising by 16.6% to $1.04 billion.
Looking Ahead
Brit CEO Martin Thompson attributed the strong 2024 performance to a combination of solid underwriting practices and successful investment results, stating that the company remains firmly focused on performance and profitability. “Market conditions remained favorable in 2024, with cumulative increases since January 2018 of 62.8%. However, challenges have emerged, including increased competition and rate reductions in several classes, resulting in an overall rate reduction of 1.4%,” Thompson said.
Looking ahead, Thompson said that the company is planning to invest in technology, strengthen broker relationships and underwriting capabilities, as well as carefully manage its insurance cycle operations amidst shifting market dynamics and industry challenges. The CEO emphasized Brit’s long-term goals: “The long-term objective is to remain a leading player in the Lloyd’s market, driven by a focus on lead underwriting and sustainable profitability.”
