Hit by catastrophes, reinsurer Canopius sees first-ever loss in 2011

LONDON—Claims resulting from natural catastrophe events pushed Canopius Group Ltd. to its first yearly loss in the reinsurer’s eight-year history, London-based Canopius reported Thursday.

Canopius posted a net loss of £61 million ($95.6 million) in 2011. By comparison, the company posted net income of £43 million ($67.4 million) in 2010. Catastrophe losses pushed the company’s combined ratio, which deteriorated to 111% from 92% in 2010. The underwriting losses were magnified by its expanded presence in international markets, said Canopius in a statement announcing its results. The reinsurer also saw investment income fall to £3 million ($4.7 million) for 2011, down from £24 million ($37.6 million) the previous year.

“Whilst we are disappointed, we are not downhearted,” Michael Watson, executive chairman of Canopius, said in a statement. “Our group’s financial position remains robust. We are increasing the overall scale of our businesses in 2012 and will continue to look at further opportunities for growth, both organic and through merger and acquisition.”