Q4-2021 Earnings Report
Key Underwriting Metrics.
Gross loss & expense ratios were better than last year & long-term average.
Year ending December 31,
2016
2017
2018
2019
2020
2021
6-Yr Avg
Ratios on gross premiums earned
Net Loss & LAE - Underlying
36.4%
25.3%
26.1%
30.2%
22.3%
21.9%
27.0%
Net Loss & LAE - Named Windstorm CAT
4.5%
8.5%
4.6%
2.4% 1 14.8%
2.5%
6.2% 1
Net Loss & LAE AOP CAT
3.9%
3.3%
3.9%
4.8%
6.1%
5.6%
4.6%
Net Loss & LAE
Expense
44.7%
37.1%
34.6%
37.5%
43.2%
30.0%
37.8%
27.2%
28.9%
26.2%
26.1%
25.7%
20.4%
25.7% 1
-31.5%
-40.6%
-41.6%
-43.6%
-45.6%
-58.2%
-43.5%
Ceding Ratio
Ratios on net premiums earned
Net Loss & LAE - Underlying
53.1%
42.5%
44.8%
53.6%
41.0%
52.3%
Net Loss & LAE
Named Windstorm CAT
6.6%
14.3%
7.9%
4.3%
27.1%
5.9%
47.9%
11.0%
Net Loss & LAE
AOP CAT
5.7%
5.6%
6.6%
8.6%
11.3%
13.4%
8.5%
93% of the y/y change
driven by reinsurance
programs designed to
Net Loss & LAE
65.3%
62.4%
59.3%
66.4%
79.4%
71.6%
67.4% reduce operating leverage
Expense
39.6%
48.7%
45.0%
46.3%
47.1%
48.7%
Combined Ratio
CAT Losses
Prior year development
104.9%
111.1%
104.2%
112.7%
126.5%
120.3%
45.9%
113.3%
and earnings volatility.
-12.2%
-19.9%
-14.5%
-12.8%
-38.4%
-19.3%
-19.5%
-3.7%
0.4%
-0.6%
-4.4%
0.9%
-4.7%
-2.0%
Underlying Combined Ratio
89.0%
91.7%
89.1%
95.5%
88.9%
96.3%
91.7%
Gross Loss Ratio - Underlying
Gross Loss Ratio - CAT
40.0%
25.0%
35.0%
20.0%
30.0%
25.0%
20.0%
15.0%
10.0%
15.0%
10.0%
5.0%
5.0%
0.0%
0.0%
2016
2017
2018
2019
2020
2021
5
2016
2017
2018
2019
2020
2021View entire presentation