Canopius profit up 27% after Omega integration

Canopius has made a £42m profit after tax in the first half of 2013, up 27% on the £33m it made in the same period last year.

The Lloyd’s insurer’s combined operating ratio improved by seven percentage points to 80% (H1 2012: 87%).

This was largely thanks to fewer catastrophes, lower reserve releases and a nine-point improvement in the attritional loss ratio, which excludes catastrophes, to 47% (H1 2012: 56%).

Canopius’s gross written premium (GWP) jumped 54% to £527m (H1 2012: £343m) following the “successful” integration of fellow Lloyd’s insurer Omega, which Canopius bought last year.

Canopius retail boost

GWP was also boosted by organic growth, particularly in Canopius’s UK retail division.

The improvements came despite a 94% drop in investment return to £1m from £18m, caused by the falling value of Canopius’s investment portfolio.

Canopius executive chairman Michael Watson said: “Our 2013 half-year results set another record for Canopius.

“An excellent underwriting result reflects a strong improvement in our attritional loss ratio, aided by a low level of catastrophe losses and continuing favourable reserve development.”

He added: “We remain committed to our strategy of increasing our scale through profitable growth, both organic and through acquisition.”

Canopius H1 2013 results in £m (except where stated)