Inigo profit up fivefold to $145m in 2023

Inigo Limited (“Inigo”) has reported profit before tax of $144.5m for the Full Year 2023, up fivefold on 2022 (2022: $28.7m) as it surpassed $1bn in Gross Written Premium (GWP) (2022: $801.5m).

In its third year of operation, Inigo increased GWP by 35.2% to $1.1bn and net earned premium grew by 44.6% from $513.8m to $743.2m. The main driver of higher profits was an improvement in the combined ratio by 8.9 points to 85.5% (2022: 94.4%). The claims ratio improved by 7.2 points to 55.3% due to a decrease in catastrophe losses year-over-year and a higher level of prior-year reserve releases, and the expense ratio reduced by 1.7 points, due to greater operating leverage, to 30.2%.

Investment returns increased fivefold to $46.1m (2022: $7.6m) or $59.8m (2022: $18.4m)  including unrealised gains recognised in other comprehensive income. Cash and investments increased by 43.8% to $1,466.6m (2022: $1,020.0m) and net assets by 26.2% to $808.9m (2022: $640.8m), including $50.1m of new capital raised in December 2023 to support future growth.

Understanding customers’ needs and helping them to understand the risks they face is at the heart of what Inigo does. In 2023 Inigo invested in building stronger relationships with its large commercial and industrial customers, to further understand the industries they work in, and how they can use Inigo research and insights for their benefit. Across insurance and reinsurance, Inigo remains committed to being focused on a limited number of areas where it sees the greatest opportunity for individual risk underwriting to outperform the cycle.

Underpinning all underwriting is informed decision-making, based on detailed data and analysis. 2023 saw the implementation of Inigo’s data lake and significant investment into gathering data, and bringing data science expertise in-house, as well as new partnerships with some of the world’s leading academic institutions in London and Cambridge. Inigo looks for lines where data offers the opportunity to write better premium. This includes natural catastrophe risks in both insurance and reinsurance portfolios, where in-house meteorologists, seismologists, and climate science experts  have enabled more accurate analysis and prediction  of the risk. 

Richard Watson, Chief Executive of Inigo said,

“We love what we do and we are sticking to our strategy. We focus on a limited number of areas where our customers really value the expertise and knowledge we are building. The advances in computer science and the ability to gather and analyse data, offer so much potential to reinvent how risk is understood and managed.”

“What we are able to do now is so cool, and feels like a massive advance in how Inigo and our customers can understand the science of risk. The book is growing, and the potential is only limited by market cycles and our imagination. We are grateful for the continued support from our policyholders and brokers, from Lloyd’s and our investors.”

“We have over two hundred staff; they have helped build a fabulous culture. We value their curiosity, the constant desire to learn and a willingness to park the ego and collaborate.”

“Looking ahead, the search for better data and knowledge continues to be our primary focus. In a world which is increasingly unpredictable, whether from climate change, geopolitical instability, or social change, we believe these skills have never been more needed.”