Exceptional underlying underwriting result continues

While not quite repeating the record underwriting result achieved in 2015/16, the 2016/17 financial year was the second best in at least the last 25 years (excluding the contribution of unbudgeted calls). This remarkable result was achieved in spite of almost half the market rebating premiums during the financial year.

This underwriting result equated to a 93% net combined ratio for the market as a whole (deteriorated from 88% in the previous financial year). The underlying combined ratio, excluding the 2016/17 premium rebates, was however closer to 88% (i.e. a very marginal improvement on the previous year).

Solid investment return

The average investment return across the market was 3.5% (considerably improved on the 1.4% investment loss in 2015/16).

The combination of the very positive underwriting result and the solid investment return was an increased overall surplus for the year (USD 485 million in 2016/17, compared to USD 197 million in 2015/16).

The graph below shows the progression of underwriting, investment and overall result for the market over the last 19 years.

...the 2016/17 financial year was the second best in at least the last 25 years...