Canopius suffers its first loss
Lloyd’s insurer Canopius Group Ltd has announced its first ever loss £64 million (about $100.6 million) before tax for 2011. The loss comes after the company posted a profit of £40 million (about $62.9 million) for 2010.
Canopius, a UK-based insurance and reinsurance group with operations in Bermuda as well as Ireland, Switzerland, Singapore and Australia, has never suffered a loss in its eight year history until now.
The company’s 2011 result was impacted by heavy catastrophe losses. Gross written premiums were up nine percent however, and that has the London insurer’s executive chairman, Michael Watson, cautiously optimistic.
“Whilst we are disappointed, we are not downhearted,” he said. “2011 was another year of good progress for Canopius, including the successful recruitment of new teams and the launch of additional platforms that ensure we are well-positioned to continue expanding our franchise.”
“Our group’s financial position remains robust,” Mr Watson added. “We are increasing the overall scale of our businesses in 2012 and will continue to look at further opportunities for growth, both organic and through merger and acquisition.”
The London insurer has responded by reducing its exposure to numerous catastrophe regions. It has replaced some regional US business with more national or supra-region exposures after hurricanes and tornadoes caused damage hundreds of miles inland.
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