Compre Group Holdings Limited Compre reports record results in ‘landmark’ year

RNS Number : 8127Q

Compre Group Holdings Limited

03 June 2024

 

Press release

3^rd June 2024

 

 

Compre reports record results in 'landmark' year

 

Compre Group Holdings Limited ("Compre"), the Bermuda-domiciled international specialty reinsurance group, today announces its FY 2023 results, the strongest in its 30-year history following a landmark year in which it completed five transactions.

 

§ Gross insurance reserves under management grew by 112% YoY to $1.6bn at the end of 2023 driven by newly acquired reserves of over $1.0bn in the year

§ $2.4bn of invested assets benefitting from locking in investment yields at the peak of the interest rate cycle

§ Tangible net asset value¹ grew by 67% in the year to $784m and operating profit² of $81m grew by 15% over prior year. Profit after tax was $279m for the year with adjusted operating return on opening tangible equity³ of 19.9%

§ Strong capital ratio of 186% well above the minimum capital requirements with continued strong regulatory relationships

§ Further support for the business from existing institutional shareholders with additional equity capital committed in 2023

§ Three new independent non-executive directors joining in 2023 supporting a strong governance culture

 

Will Bridger, group CEO, Compre, said: "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 $1bn. 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."

Performance was primarily driven by 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. 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.

Invested assets increased by 110% in the period and net investment income more than doubled to $48.7m, benefitting from higher portfolio yields, enhancing our earnings stability and predictability.

 

 

Compre remains well positioned as one of a small group of retrospective reinsurers capable of taking on larger portfolios of re/insurance liabilities. The deal pipeline remains active, assisted by the ongoing hard live underwriting market and the increasing demand from clients seeking capital and liability solutions to optimize balance sheets. In addition, 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.

- Ends -

 

Notes

1          Tangible Net Asset Value excludes goodwill and other intangible assets from the net asset value. The figure shown is based on all signed deals as at the end of the period including signed deals which are yet to be completed.

2          Operating profit refers to profit before tax adjusted for items outside the control of the management team such as mark to market movement on investments, discounting on liabilities, currency related movements and other non-recurring items. The figure shown is based on all signed deals in the period including signed deals which are yet to be completed.

3          Adjusted Operating Return on Tangible Equity is calculated based on the operating profit for the year as a proportion of the opening TNAV. The opening TNAV is adjusted for the same items as operating profit to aid a like for like comparison.

 

 

 

For further information please contact:

Compre

David Haggie / Richard Adams / Olivia Thomson, Haggie Partners

[phone]

 

About Compre:

Compre is a global specialty reinsurer providing capital and liability solutions for its clients giving certainty to prior year development.  It has over 30 years of experience in the acquisition and management of discontinued and prior year non-life insurance and reinsurance portfolios. Compre has experience of acquiring most classes of direct and reinsurance business, including general liability, marine and motor liability, and US APH and workers' compensation. Compre has operations in Bermuda, Finland, Germany, Ireland, Malta, Switzerland, the UK, the USA and at Lloyd's of London. 

www.compre-group.com

Cautionary note on forward-looking statements

This announcement may contain forward-looking statements. All statements other than statements of historical fact included in this announcement are forward-looking statements. Forward-looking statements express the Issuer's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. Such forward-looking statements are based on numerous assumptions regarding the Issuer's present and future business strategies and the environment in which it will operate in the future. No representation is made or will be made that any "forward-looking" statements will be achieved or will prove to be correct. Actual events or conditions may differ materially from such assumptions. Similarly no representation is given that the assumptions disclosed in this announcement upon which forward-looking statements may be based are reasonable. Past performance is not a reliable indicator of future performance. The recipient acknowledges that circumstances may change without notice and the contents of this announcement may become outdated as a result.

 

 

 

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