2024 was the fourth period of trading for SIIS as it builds upon its presence within the local Swiss and the European markets. Throughout the financial year the Company has underwritten gross written premiums of CHF 34.5 million (2023: CHF 28.4 million). Net premiums written for the year amounted to CHF 6.6 million (2023: CHF 5.9 million), implying an average risk retention rate of around 19.1% (2023: 20.8%).
The Company generated 59% (2023: 66%) of the written premiums through property insurance contracts. These were mainly underwritten in Switzerland and included as well premiums from within the European Union through assumed reinsurance from EEA territories. This class represented the highest grossing insurance class for the entity in terms of premium volumes. It’s share of the total written premiums has however declined over the years as the Company has diversified and expanded into other classes of business (mainly financial lines). The composition of written premiums by the other classes of business was as follows: Aviation was of 13% (2023: 12%), Casualty was of 3% (2023: 1%), Financial Lines was of 24% (2023: 19%) and Marine was of 1% (2023: 2%).
The total gross earned premium for the period was CHF 32.8 million (2023: CHF 28.9 million), whereas net earned premium for the period was CHF 6.5 million (2023: CHF 6.1 million). The Company’s incurred claims were significantly higher than prior year and amounted to CHF 6.2 million (2023: CHF 4.4 million). The loss ratio was of 95% (2023: 72%). The higher incurred claims were the main driver of the increase in the loss ratio.
The business strategy for the Company is to cede a significant portion of gross written premium to a stable panel of reinsurers, mainly through quota-share contracts and individual facultative policies. During the year, 81% of gross premiums were ceded to reinsurers (2023: 79%). The high reinsurance cessions enable the business to achieve significant reinsurance ceded commissions, which, supplemented by disciplined cost control are the drivers for the favourable expense ratio.
On a Swiss Solvency Test (“SST”) basis, the Company has a risk bearing capital of CHF 48.4 million at 31 December 2024 (2023: CHF 42.1 million). The target capital calculated on the basis of the SST is CHF 13.0 million (2023: CHF 15.8 million). Therefore, the Company’s calculation yields a Solvency Ratio of 372% at 31 December 2024 (2023: CHF 266%). The solvency ratio is above the Company’s risk appetite.
| |
2024
CHF million |
2023
CHF million |
| Risk Bearing Capital less MVM |
48.4 |
42.1 |
| Target Capital less MVM - required by SST |
13.0 |
15.8 |
| Solvency Ratio |
372% |
266% |
