The Overseas P&C Business has a diversified portfolio consisting of SompoRe, North America, Global Markets, AgriSompo (global agriculture business), and Consumer P&C Segment.
Excluding AgriSompo, which continues to be affected by commodity prices in North America, all businesses maintained high growth, and gross premiums for 2024 reached US$16,532 million.
The strategic business units of our Overseas P&C Segment reported the following results in 2024:
SompoRe
Gross Premiums Written (GPW) increased by 8.1% to US$4,532 million, mainly due to successful renewals, new business written and reinstatement premiums. The favorable rate environment in Global Property, new business and prior year premium adjustments, as well as Global Casualty renewals, drove strong growth.
Underwriting income increased to a record US$394 million, up from US$366 million in the prior year, primarily driven by strong earned premium growth. The current year combined ratio of 89.8% is outstanding, yet still in line with the 89.8% in 2023, albeit impacted by changes in business mix between quota share and excess of loss treaties along with changes in the market cycle in Casualty.
North America (United States, Bermuda, Canada and Mexico)
GPW totaled US$4,997million, an increase of 5.6% from a year ago. This was the highest level ever for North America, reflecting broad-based new business growth, in part driven by geographic expansion initiatives, and an overall continued positive rate environment exceeding loss cost trends. Double-digit rate increases in Casualty were partially offset by the ongoing competitive market environment in other lines.
Underwriting income was US$15 million compared to an underwriting loss of US$152 million in 2023. The improvement was mainly due to the impact of reserve strengthening for 2019 and prior accident years that took place in 4Q 2023, partially offset by higher catastrophe activity, strategic changes in the reinsurance structure, and higher G&A expenses to support business growth.
Pre-tax catastrophe losses were $215 million, including those incurred from hurricanes Milton and Helene, compared with $172 million in 2023.
Global Markets (United Kingdom, Continental Europe and commercial business within Turkey, Brazil and Asia Pacific)
GPW totaled US$2,993 million, a year-on-year increase of 16.6%, with strong contributions from both the core in-situ
business lines (particularly Casualty and Energy) and from the strategic growth initiatives in Continental Europe,
APAC and UK Commercial.
Underwriting income of US$62 million increased from US$29 million reported a year ago. This was driven by higher net
earned premium and a lower net loss ratio (with the prior year impacted by reserve strengthening), partially offset
by higher G&A expenses due to the upfront investment in the strategic growth initiatives and the ongoing impacts
from inflation and FX.
AgriSompo (global agriculture business)
GPW totaled US$2,627 million, a decline of 8.7% from a year ago. This was mainly driven by the decline in commodity prices in North America. Additional impact was realized from ongoing efforts to re-underwrite the portfolio, reducing concentration risk.
For 2024, AgriSompo reported an underwriting income of US$46 million compared to an underwriting loss of US$67 million a year ago. The improvement in the underwriting income was primarily driven by significant favorable prior year reserve development in the current year, partially offset by higher G&A expenses due to ongoing impacts from inflation and investments.
Consumer P&C Segment
Our Consumer P&C segment, which includes the personal lines operations in Turkey and Asia Pacific, generated an
underwriting loss of US$19 million compared to underwriting income of US$11 million a year ago. Consumer GPW totaled
US$1,381 million, a year-on-year increase of 33%. This excluded the impact of the Brazil consumer exit in 2023,
primarily driven by inflation-related increases in Turkey.
