The result for the Britannia Group for the year 2023/24 is a surplus of USD58.2m, which consists of an underwriting deficit of USD5.3m and an investment return of USD63.5m.
The Britannia Group says its s strategic goal is to return to underwriting balance equivalent to a combined ratio of 100%. It continues to use its financial strength to achieve that goal over a sustainable timeline.
Anthony Firmin, the Britannia Group’s Chairman, commented: “As in the past years, the result of the 20 February 2024 renewal confirms our Members’ loyalty to the Britannia Group and their appreciation of the consistent high level of service and financial stability. The quality of our membership remains at the highest level.
“The Britannia Group’s strategic targets sit comfortably with our proven, long-term guiding values; financial stability, a superior level of service to Members, active cost control and conservative growth. Aligned with our targets, the Britannia Group has made further investments in the organisation, specifically in the regional hubs and loss prevention.”
The combined ratio for the year ended 20 February 2024 is 102% (compared to 107% in 2023 and 116% in 2022). Further progress has been made at the 2024 renewal through a combination of measures, including rate increases, changes in deductibles and some targeted remedial action.
Calls and premiums were USD288.8m (compared with USD258.1m for the prior year). This rise reflects the increased tonnage and the move towards underwriting balance. Reinsurance costs were higher, both for the General Excess of Loss and the other reinsurances bought by the Britannia Group. The year ended 20 February 2024 was challenging for investment markets but resulted in a very positive investment return for the year as a whole.
Claims incurred in the financial year were slightly higher than the prior year, but the claims ratio showed a welcome fall from 84% to 80%. While the five-year average claim numbers and values have increased, this in part mirrors the growth in the Britannia Group’s entered tonnage.
As at 20 February 2024, there were 20 claims above USD1m in respect of the 2023/24 policy year. While 20 is in line with the five-year average, their USD75m aggregate value is 12.5% higher than the five year average.
As at 20 February 2024, 12 Pool claims had been notified within the IG for the 2023/24 policy year, with a total ground up value of USD256.4m and of which USD136.4m is covered by the Pool. This compares to four Pool claims at the same stage in 2022/23 with a cost to the Pool of USD74.6m.
