Canopius Group has reported a loss after tax of $25 million for fiscal year 2022, largely due to an investment return of negative $80 million during the period.

The global specialty re/insurer said its group combined ratio improved to 93.6 per cent (2021: 96.7 per cent) underpinned by strong performance across each geographical segment with combined ratio in the United States and Bermuda of 84 per cent, UK of 96 per cent and Apac of 90 per cent.

Gross written premiums increased to $2,338 million (2021: $2,220 million) with growth seen in all geographies.

The attritional loss ratio was 44.3 per cent, including losses from Russia-Ukraine.

Neil Robertson, the group chief executive, said: “In 2022 Canopius underwent a structured programme of transformation, with meaningful contributions from our colleagues across the group.

“We set out an ambitious strategy of growth over a three-year period as a multinational, multi-platform insurance company across three regional business units, the UK, US and Bermuda, and Asia-Pacific.

“In delivering this growth journey, in 2022 we set about ‘resetting’ our operating model. We went through a restructure and ‘transformed’ the business to better align global products and regional expertise to unlock our full potential. These results show the significant progress that has been made and represent a very positive step forward for our group.”

He added: “Our combined ratio of 93.6 per cent is pleasing, particularly when considering the headwinds which our industry has faced this year. We have withstood unprecedented geopolitical uncertainty, macroeconomic turmoil and, like others, our results were impacted by Hurricane Ian.

“The loss after tax of $25 million was driven by negative investment return, without which we would have recorded a satisfactory pre-tax profit. A negative investment return of $80 million (-2.8 per cent) is due to interest-rate increases creating mark-to-market unrealised losses that we expect to unwind into 2023. Our defensive and short-duration portfolio leaves us well positioned.

“2022 was challenging. However, we have weathered these challenges while building a better business which is now fully capable of harnessing the power of our talent and technology to unlock innovation, facilitate transition and drive enterprise and stakeholder value. Further, we have made great strides in improving systems and processes and are well positioned for implementation of IFRS17.

“We are now more in control of our own destiny and can reach our goals without needing to rely on a strong economy or further hardening in market conditions.

“We have a business that is well positioned to take advantage of a continued positive rating environment, and we expect the mark-to-market investment losses to unwind positively in the year.

“Canopius is very much focused on building a long-term sustainable and robust business that benefits all our stakeholders and delivers on our promises and commitments. We look ahead, confident in our ability to maintain momentum and deliver a strong underwriting performance in 2023.”