Brit posts $652 million profit
Brit Group reported a profit after tax of $651.8 million for the year ended December 31, 2025, a 36% jump from $478.4 million the prior year, marking the specialty insurer’s first set of annual results since separating from its algorithmic underwriting platform Ki at the start of the year.
The London-based Lloyd’s insurer delivered a return on net tangible assets of 28.8%, up from 25.8% in 2024, powered in large part by an investment portfolio that returned $586.5 million, or 9%, compared to $272.3 million, or 4.8%, the year before.
Underwriting results were more mixed. The undiscounted combined ratio deteriorated to 89.3% from 85.3%, and the insurance service result fell to $446.2 million from $557 million in 2024, reflecting softening conditions across much of the market. Brit reported an overall risk-adjusted rate decrease of 4.8% for the year, a notable shift from the 1.4% decrease in 2024, signaling accelerating pressure on pricing. Premium volume grew modestly to $3.09 billion, up 3.8% at constant exchange rates.
The Los Angeles wildfires, which struck at the start of 2025, were the year’s defining catastrophe event for the industry and tested Brit’s exposure management approach. Group CEO Martin Thompson acknowledged the fires as a reminder that catastrophe risk is not confined to Atlantic hurricane season and pointed to the event as validation of the company’s portfolio construction and aggregation management discipline.
The bigger strategic story for Brit in 2025 was its accelerating buildout in Bermuda. Through its reinsurance vehicle Brit Re, the company is establishing what Thompson described as a long-term Bermudian platform with meaningful scale, giving it access to business and talent outside London while leveraging its Lloyd’s underwriting brand. The Bermuda operation delivered a strong result in its first full year and is expected to expand further in 2026.
Brit also strengthened its balance sheet during the year, becoming co-obligor on two senior unsecured notes issued by its parent Fairfax Financial with a combined nominal value of CAD 700 million, and successfully placed a Brit-sponsored catastrophe bond. The capital surplus over management requirements stood at $1.52 billion, or 175.2 percent, at year end, up sharply from $823.1 million and 147.9 percent at the end of 2024, after paying $236 million in dividends.
Looking into 2026, Thompson said the competitive environment will continue to tighten but maintained that attractive margins remain in select lines where Brit intends to concentrate its capital. The company’s strategy centers on lead underwriting at Lloyd’s and long-term profitability over volume growth, a posture Thompson said is supported by Fairfax’s long-horizon ownership model.
“Our success is underpinned by our unique culture. I am proud of how this sees Brit strive for excellence in everything we do and would like to thank everyone at Brit for their hard work in delivering these results.” – CEO Martin Thompson.
