Brit Limited Achieves Strong Financial Results, Outlines Strategic Plans
Brit Limited announced robust financial results for 2024, with pre-tax profits and gross written premiums showing growth. This was a performance that the company’s Chief Executive Officer, Martin Thompson, has attributed to the company’s focus on underwriting. Thompson has also outlined plans to invest in new technologies and deepen relationships with brokers.
In 2024, Brit Limited reported a pre-tax profit from continuing operations of $661 million, a notable increase from the $623.9 million recorded in 2023. After-tax profit from continuing operations, however, was slightly down, at $576.2 million compared to $629.2 million the previous year.
Return on net tangible assets from continuing operations reached 23.5%, reflecting a year of adjusted net tangible asset growth. The combined ratio for continuing business, after discounting, stood at 75.7%, with an undiscounted combined ratio of 85.9%. The insurance service results saw a profit of $674.8 million. Gross written premium for 2024 totaled $3.78 billion, up from $3.75 billion in 2023, illustrating the company’s continued market presence.
The company’s capital position remains strong with a surplus over management entity capital requirements of $987.5 million, which is equivalent to 53% after dividend payments of $605.4 million. The investment approach continues to favor stability, with the investment portfolio mainly allocated to cash and fixed income securities at 84.5% of total investments.
Key Developments in 2024
Last year, Brit expanded its operations in Bermuda with the launch of Brit Re. The company also emphasized its commitment to refining underwriting capabilities, introducing new strategic pricing and rating engines. In December, AM Best affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) for Brit Reinsurance (Bermuda) Limited (Brit Re), reflecting the unit’s strong balance sheet strength and limited business profile. The outlook for both ratings remains stable. Furthermore, Brit launched the “BUILD Project Cargo” and “Cyber First50” consortia. Also completed was the sale of its holding in Canadian MGA Sutton during the year.
Meanwhile, Ki, which was recently established as a standalone operation, stated that brokers can now access third-party digital capacity from several syndicates through its platform. Ki’s written insurance premium also saw growth, rising by 16.6% to $1.04 billion.
Looking Ahead
Brit CEO Martin Thompson highlighted the company’s underwriting and investment successes in 2024, owing them to a clear strategic focus 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%,” he stated.
Looking forward, Thompson announced the company’s plans to invest in technology, enhance broker relationships, and reinforce underwriting capabilities. Additionally, they will carefully manage their insurance cycle operations amidst changing market dynamics and other industry hurdles. “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,” Thompson said.
