SVB Holdings estimated that operating profits for 2003 would be not less than £30m, based on its long-term rate of return.
SVB Syndicates, the company’s Lloyd’s managing agency, also produced “Highly encouraging” open year forecasts for 2002 and 2003.
Initial forecasts for the managed Syndicates in the 2003 year of account are 7.5% to 15% for Syndicate 1007, with a capacity of £151m, and 7.5% to 15% for Syndicate 2147, with a capacity of £286.5m.
For the 2002 year of account, the forecast ranges for SVB’s managed Syndicates are 12% to 17% for Syndicate 1007, with a capacity of £150.9m; 7.0% to 12% for Syndicate 1241, with a capacity of £169m; and 9.0% to 14% for Syndicate 2147, with a capacity of £154m.
The 2002 year of account continued to demonstrate to demonstrate strong profitability in many areas, said the company. Both Syndicates 1007 and 2147 have so far shown very low net loss ratios, it said.
Syndicates 547 and 2147, which wrote predominately short-tail accounts both closed within the previously published ranges, the final results for the 2001 year of account showed.
Syndicates 1007 and 1241 showed small net profits before September 11 losses, said SVB, demonstrating further improvement in the 2001 year of account.
On current trading, SVB said the rating environment at the turn of the year was more robust than some had predicted. The group's core Specialty lines continued to benefit from rate increases across the board, it said.
