Omega Insurance Holdings – Syndicate 958 Results and Forecasts - 29.02.08

Omega announced its 2005 Account result this morning and estimates for 2006 and 2007. 

"Omega Insurance Holdings Limited ("Omega") today announces Syndicate 958's profit for the 2005 year of account, together with the profit forecast for the 2006 year of account and an initial forecast for the 2007 year of account.

The result and forecasts in the table below are after standard personal expenses
and are expressed as a percentage of capacity.

Year of Account    Capacity £m   Profit/forecasts    Previous forecasts
            2005             224                8.75%                  5% to 10%
            2006             249           14% to 19%         12.5% to 20%
            2007             274          7.5% to 17.5%                N/A

The 2005 year of account sustained the impact of Hurricane Katrina, the world's largest ever insured, natural perils loss, and Hurricanes Rita and Wilma. The result is at the top end of the previously forecast range.

The range of forecast profit for the 2006 year of account has been narrowed and the midpoint raised. The 2007 year of account is still at an early stage of development. The forecast range assumes a normal claims development and reflects the strong trading conditions and benign loss experience.”

Richard Tolliday, Chief Executive of Omega, commented:
"Once again Syndicate 958 has delivered an excellent set of results. We are particularly pleased with the closing result for 2005 when the insurance market suffered large losses due to Hurricanes Katrina, Rita and Wilma. We are delighted that Syndicate 958 has continued its unbroken record of underwriting profitability for a 26th consecutive year. As always, our focus remains on writing short tail property insurance and reinsurance for small to medium sized insureds and reinsureds which allows us to produce relative consistency and low volatility of results and to generate market out-performance over the cycle."

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