Chaucer plc interims
Chaucer plc has released its half year results to the LSE today. Key financial highlights as extracted from their Press Release, as follows:-
Profit before tax of £7m (30 June 2009 £17m)
Gross written premiums of £493m (30 June 2009 £491m)
Investment return of £17.7m (30 June 2009 £34.6m)
Return on average funds of 1.4% (30 June 2009 2.7%);
Underwriting performance
A difficult underwriting period with a significant number of natural and manmade catastrophes Combined ratio of 105% (30 June 2009 91%) Chilean earthquake, Deepwater Horizon energy and European windstorm Xynthia loss estimates remain unchanged
Reserve releases of £5.3m (30 June 2009 £22.2m)
Business outlook
Over 50% of underwriting portfolio now showing rate increases;
Targeting UK motor and energy classes where rates continue to rise;
UK motor market continues to harden; portfolio rate increase of 16.8% expected for 2010;
UK motor account forecast to deliver a combined ratio of below 100% for business incepting in 2010;
Recruitment of new International Liability Division complete; £40m income target for 2011;
Expansion of international network in Latin America with new Argentina office;
International energy presence strengthened further with Scandinavian and Latin American partnerships;
Commenting on the results, Bob Stuchbery, Chief Executive Officer, said:
"The first half proved to be a difficult underwriting period, with an unprecedented level of catastrophes, although our Property and Energy Divisions still produced credible results. We are also pleased with the strong performances of our Aviation, Specialist Lines and Nuclear Divisions.
This is a transitional period for the UK motor market and we are seeing very encouraging rate increases and the positive impact of our continued fight against claims farming and fraudulent claims. Overall, the outlook for our UK motor account looks promising.
Finally, with over half of our diversified portfolio now showing rate increases for 2010, we are taking full advantage of the opportunities emerging, especially within energy and UK motor"
For the full release to the LSE click here.
For Chaucer’s presentation to analysts click here
This has some good slides on the various classes and outlook for 2011.
