Bermuda-domiciled international specialty reinsurer Compre has revealed that 2023 was the strongest year in its history, with gross insurance reserves under management growing by 112% YoY to $1.6 billion, driven by newly acquired reserves of over $1 billion.
Elsewhere in its full-year 2023 results, Compre disclosed that invested assets stood at $2.4 billion, benefitting from locking in investment yields at the peak of the interest rate cycle.
Meanwhile, tangible net asset value grew by 67% in the year to $784 million, and operating profit grew by 15% compared to 2022, reaching $81 million.
Compre’s profit after tax in 2023 was $279 million, with an adjusted operating return on opening tangible equity of 19.9%.
The firm’s net investment income more than doubled to $48.7 million in 2023, reportedly benefitting from higher portfolio yields, enhancing its earnings stability and predictability.
“Performance was primarily driven by the 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,” Compre said.
The firm continued, “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.”
Will Bridger, group CEO, Compre, commented, “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 $1 billion.
“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.”
Compre explained that it remains well positioned as one of a small group of retrospective reinsurers capable of taking on larger portfolios of re/insurance liabilities.
According to the firm, the deal pipeline “remains active”, assisted by the ongoing hard live underwriting market and the increasing demand from its clients seeking capital and liability solutions to optimize balance sheets.
“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,” Compre concluded.
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