MS Reinsurance rebounds in FY’23 amidst favourable conditions

Gross written premiums increased by 34%.

Reinsurer MS Reinsurance reported a net profit of $366m for 2023, a rebound from the $50m net loss in 2022. This turnaround was announced alongside parent company MS&AD's release of its full-year financial results for 2023.

CEO Robert Wiest highlighted 2023 as a pivotal year for MS Reinsurance, attributing the success to favourable market conditions and a client-focused, portfolio-based approach. 

He noted that the company achieved its five-year turnaround goal in just three years, laying a strong foundation for future growth and modernisation.

The net profit of $366m includes a one-time tax impact of $93m from deferred tax asset recognition due to anticipated corporate tax revisions in Bermuda. 

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Excluding this, the net profit stands at $273m. 

This profitability was achieved despite inflation, geopolitical uncertainties, and significant loss activity, driven by favourable non-catastrophic experiences, equity returns, and higher-than-expected liquid asset returns.

Gross written premiums increased by 34% year-on-year (YoY) to $3.1b, driven by favourable market conditions and strategic diversification, particularly in European property and casualty, agriculture, and US casualty lines.

The combined ratio improved to 90.5% in 2023, down from 98% in 2022. 

The normalised combined ratio, excluding the impact of large loss events, was 88% compared to 98% in 2022, reflecting the company's improved operational efficiency.