The year-to-date claims experience as measured by the net incurred loss ratio improved to 61.9% compared to 64.6% in the same period of 2020. The restructuring of previously poor performing portfolios continues to yield positive results on the claims experience despite a slight increase of the overall cost of the Covid-19 related insurance claims which continue however to be within expectation.
The increase by 22% of the business acquisition costs from US$71 million in June 2020 to US$86 million, translating to an expense ratio of 28.5% compared to 24.4% in June 2020, was a result of the increase in the top line combined with higher than usual profit commissions paid to ceding insurance companies whose solvency relief contracts performed exceptionally better.
Consequently, the combined ratio at the end of June 2021 stood at 96.9%, an improvement over prior year’s 98.1%.
As a result, net underwriting profit for the 1st semester of 2021 closed at US$9.2 million, outperforming the US$5.4 million reported in June 2020 by 69.1%.