Chaucer back in profit

Chaucer announced profit before tax and foreign exchange on non-monetary items of £75.3m after making a loss last year of £59.5m. Its pre-tax profit was up too, to £42.0m from a loss of £26.2m. Gross written premiums were up 15.3% to £795.6m (£689.9m), up 5.4% on a constant currency basis.

Underwriting profit was £45.8m before the impact of foreign exchange on non-monetary items, up from £33.0m, and its combined ratio fell from 94% to 93%.

Financial highlights £m (2008 in brackets)

• Gross written premiums 795.6 (689.9)
• Net earned premiums 672.6 (538.4)
• Profit/loss before tax and foreign exchange 75.3 (-59.5)
• Profit/loss before tax 42.0 (-26.2)
• Combined ratio 93% (94%)
• An average premium rate increase 5.7% (-3.6%)
• Contribution from syndicate participation and management £5.9m (£4.4m)

Bob Stuchbery, chief executive officer, said: "Our underwriting performed positively in 2009, with good results from our Property, Aviation, Energy and Specialist Lines Divisions. Our investment return was also particularly good following the dramatic change in the portfolio from 2008.

“The outlook for the business remains encouraging despite the softening of rates across some classes of business. Our broad-based underwriting portfolio will enable us to take full advantage, especially with good opportunities for UK Motor and Aviation.

“With a new management team and business strategy in place, I am confident of our ability to lead Chaucer to further success in 2010."

Chile earthquake

Stuchbery said: “The powerful Chilean earthquake of 27 February 2010 will cause significant international insurance and reinsurance losses.

“Our Property Division has sought to avoid Chilean treaty reinsurance programmes because of dissatisfaction over terms and conditions but will incur losses from other classes. The net effect of these losses will be contained within our annual catastrophe loss budget.

UK Motor

“In UK motor, we forecast private car rate increases of approximately 14%, in response to unacceptable returns in 2009, and improvements in the fleet market following several years of fierce competition.

New finance director

Chaucer also announced the appointment of Mauricio Carrillo as finance director of Chaucer Syndicates Limited ('CSL'), Chaucer's Lloyd's managing agency and main operational subsidiary, with effect from 1 April 2010. Carrillo succeeds Ken Curtis following his promotion to chief finance officer of Chaucer Holdings in December 2009.

A chartered accountant, Carrillo joined Chaucer in April 2004 following six years in the Insurance Group of Deloitte & Touche in London. He was most recently head of finance. Carrillo will continue to report to Ken Curtis and will lead a finance team of over 30 people.