2020 ANNUAL REPORT
2020 ANNUAL REPORT
Our insurance portfolio has been on a growth trajectory the last four years. Gross premiums written generated by our insurance operations were $2.2 billion in 2020, an increase of 13% over the prior year. For the 7th straight year, our insurance operations generated an underwriting profit, with the net combined ratio coming in at 96.1%, 0.2 points better than the prior year. Our insurance operations had minimal COVID-19 losses in 2020 and we are pleased to advise that we don’t have a single pandemic-related claim in dispute or litigation at this time. The insurance rating environment remains positive and our business pipeline is strong, so we remain bullish about our future growth prospects.
In the U.S., insurance is underwritten by Hudson Insurance Group. With headquarters in New York and offices across the U.S. and in Vancouver, Canada, Hudson offers primary and excess insurance on an admitted and non-admitted basis.
Outside the U.S., Newline Group offers insurance products in more than 80 countries around the world. It is headquartered in London and operates through three underwriting platforms: Newline Syndicate 1218 at Lloyd’s, Newline Insurance Company Limited and Newline Europe Versicherung AG (Newline Europe).
Christopher L. Gallagher
Chief Executive Officer
Hudson Insurance Group
Widely known for serving market niches that require highly specialized claims and underwriting capabilities, Hudson offers a wide range of property, casualty and specialty insurance products to corporations, professional firms, and individuals through retailers, wholesalers and program administrators.
Hudson’s growth continued in 2020 as we recorded $1.9 billion in gross premiums written. This represents an increase of 11% compared to gross premiums written of $1.7 billion in 2019. Growth was most notable within the Directors & Officers Liability, Professional Liability and General Liability & Package business lines.
Our underwriting performance was very strong as we ended 2020 with a net combined ratio of 96.5% compared to 96.4% in 2019. We did see increased Cat losses in our Specialty Property & Energy business as well as current year extraordinary losses in Crop. We had minimal COVID-19 claims exposure and benefited from favorable prior year development in many lines including Professional Liability, Healthcare and Tribal.
In late 2020 we announced two acquisitions that successfully closed in January 2021: The Allegheny Group, Inc. and its subsidiaries, Allegheny Surety Company and Allegheny Surety Agency, as well as the renewal rights and Professional Lines team from Validus Specialty Underwriting Services, Inc. Growth by acquisition remains an important element of our business strategy and we are in an excellent position to respond to opportunities as they emerge.
2020 GROSS PREMIUMS WRITTEN
$1.9
Billion
2020 COMBINED RATIO
96.5%
2020 COMBINED RATIO
96.5%
Carl A. Overy
Chief Executive Officer
Newline Group
Newline provides an array of insurance solutions to clients in the U.K., Continental Europe, Australia, AsiaPacific, Canada and Latin America.
Newline delivered excellent results in 2020, with gross premiums written of $371.3 million and a net combined ratio of 94.3%. This compares to gross premiums written of $297.6 million and a net combined ratio of 96.0% in 2019. Growth in 2020 was principally driven by Liability, Directors & Officers Liability and Affinity & Special Risks. Positive rate movement was evident across all lines of business, but was most prominent in Financial & Professional Lines. The result also benefited from favorable loss development in several areas.
Our Clinical Trials underwriting team saw tremendous submission activity. By the end of 2020, Newline was insuring over 500 clinical trials associated with COVID-19. These trials related to diagnostics, therapeutics as well as the vaccine itself. We are also currently providing product liability solutions to the main vaccine manufacturers and are working around the globe to provide cover for in-country manufacturing facilities.
In 2021 we are celebrating the 25th anniversary of Newline Syndicate 1218. We are proud of our history and look forward to serving our clients and business partners for many years to come.
2020 GROSS PREMIUMS WRITTEN
$371.3
Million
2020 COMBINED RATIO
94.3%
2020 COMBINED RATIO
94.3%
Newline Syndicate at Lloyd’s
Newline Insurance Company Limited