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Australia chips in as Canopius profit jumps 

Canopius Group’s full-year profit after tax surged to $US363 million ($549 million) from $US129 million ($195 million) previously, with Australia making a strong contribution as part of the Asia-Pacific region.

Growth in the well-established Lloyd’s business in the region was attributed to a broad number of business lines.

“Specifically, Australian accident and health saw significant improvement off the back of increased travel volumes,” the company said.

Canopius also benefited from the first year of production from an acquired team of treaty underwriters in Australia and favourable market conditions in Singapore for the reinsurance portfolio.

The UK-based specialty and property and casualty reinsurer and insurer says the underwriting result was the strongest in its history.

Insurance contract written premium rose 22% to $US2.8 billion ($4.2 billion), with the UK up 19% to $US2 billion ($3 billion), the US rising 21% to $US513 million ($776 million) and Asia-Pacific up 35% to $US295 million ($446 million).

A positive rate movement of 9% and “substantial organic growth” helped the result, while investment income was $US173.1 million ($262 million) compared with a loss of $US79.6 million ($120 million) the previous year.

“Canopius has been able to deliver attractive underwriting profitability and business growth while undertaking major initiatives including adding substantial capabilities to our business,” Group CEO Neil Robertson said.

The company says the combined operating ratio, after discounting, improved to 83.9% from 90.2%.

Mr Robertson says this year has started well, with “attractive premium development, positive rate and a satisfactory” reinsurance renewal.

“The broader rating environment remains dynamic and is being driven by several factors,” he said. “This includes the sizeable shifts in reinsurance rate, capacity, terms and conditions, the ongoing inflationary impacts in claims and movements in interest yields.”