Wellington Underwriting chairman John Barton said the company continued to perform well, as he gave a statement at Wellington’s AGM.
He said Wellington’s core business, Syndicate 2020, had experienced good patterns of renewal sand seen some interesting new business opportunities in the first five months of the year.
Barton said this was entirely in line with expectations and leaves rates significantly above the last peak in the cycle in 1993/4.
He added: “As ever, we actively manage our book of business to ensure maximum return on capital and this has led to some reduction in writing the direct property account, particularly the US, matched by increases in the marine liability, UK commercial and property treaty classes.
The forecast profit for syndicate 2020’s 2002 year of account remains unaltered at 10-15% of capacity, as does the 2003 forecast of 11-18% profit, Burton said.
“Loss experience has been benign thus far this year which augurs well for another successful and profitable result for the 2004 year of account. Exposure to changes in foreign currency rates has been significantly mitigated through the use of forward foreign exchange contracts.
Wellington’s Aspen subsidiary reported a strong set of results for the first quarter, reporting a combined ratio of 66%, said Burton.
He added that Wellington’s US businesses continued to perform well.
Burton also announced changes to the board, with the retirement of Hans Hefti with immediate effect.
The company had begun recruiting for a replacement non-executive director, as well as a replacement for Julian Avery, who is due to retire next year.
