Convex Group Limited, the international specialty insurer and reinsurer has achieved its first annual profit since it was founded in Bermuda in 2019.

Net profit attributable to common shareholders was $503.2 million in 2023, compared with a net loss of $142.2 million in 2022.

The 2023 figure includes the establishment of a deferred tax asset of $67.7 million related to the enactment of Bermuda’s corporate income tax.

The success was related to a strong underwriting profit and a positive investment return, as the company wrote risks across a diverse range of business lines.

The company said: “As well as anticipated attritional losses, Convex was faced with the complexities of a number of natural catastrophes and man-made events.

“Losses from these events were in line with expectations given the company’s market share and it benefited from favourable development on prior years.”

Stephen Catlin, executive chair of Convex Group, said: “2023 was a very successful year for Convex. The scale and market presence we have achieved is nothing short of impressive. I commend the team for their efforts.

“While 2023 was a positive year for many, there is still work to be done. Market conditions and rates have improved significantly, however, 2023 was a quiet year for the North Atlantic hurricane season and many are forecasting a hyper-active 2024.

“The casualty market is also now experiencing the predicted issues created by reserving deficiency and currently rates are rising.”

Paul Brand, the chief executive of Convex Group, said: “My colleagues have worked tremendously hard to achieve these results. We launched into a dislocated market in 2019 and the consistent hard work undertaken since then has further built our underwriting capabilities, market relevance, and resilience, allowing us to achieve further growth, while continuing to serve our client’s needs.”

The company, which also has offices in London, had gross written premium of $4,217.6 million, an increase of 39 per cent from $3,035.4 million in 2022.

Net premium earned was $2,337.1 million, an increase of 39 per cent from $1,686.5 million in 2022.

The underwriting success included a net combined ratio of 89.6 per cent, improved from 98 per cent in 2022.

Investment return was $240.4 million in 2023, after a loss of $107 million in 2022, due, the company said, to strong core fixed-income returns, driven by high starting yields on the portfolio and a fall in risk-free yields during the last quarter.