Global re/insurer MS Amlin Underwriting Limited, part of insurance group MS&AD, saw its combined ratio deteriorate by 10 percentage points to 94.5% for the first half financial reporting period to June 30th, 2025, as the impact of the California wildfires in January contributed to a more challenging loss environment.
However, the net financial result increased by £6 million, or 38% to £22 million for H1’25 from £16 million a year earlier, driven by improved returns from non-duration investment assets and equities.
Profit after tax fell by £40 million, or 46% to £47 million for H1’25 compared with £87 million for H1’24, which reflects disciplined underwriting and effective portfolio and cost management despite the impacts of the Los Angeles wildfires.
As mentioned, the impact of the wildfires, and other losses in the period, pushed up the combined ratio year-on-year, although this was partially offset by profitable growth and continued improvements in the firm’s underlying underwriting performance.
In total, MS Amlin incurred losses and loss adjustment expenses of £496 million in H1’25, an increase of £142 million, or 40% year-on-year, as the loss ratio increased by 12 percentage points to 59.7%.
The expense ratio improved by 2 percentage points to 34.8% for H1’25, supported by ongoing cost discipline.
In terms of growth, MS Amlin’s net premiums written increased by £321 million, or 45% to £1.039 billion, as net premiums earned rose by £88 million, or 12% to £831 million.
In light of the solid H1’25 performance, MS Amlin expects positive net income of £189 million for the full year 2025, assuming catastrophe losses are in line with expectation. The re/insurer also expects to generate an insurance service profit of £223 million, with a combined ratio of 87.5%.
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