Advent, the specialist Lloyd's insurer, has turned around a £74.8m loss in 2005 to make a profit before tax of £22.2m in 2006.
According to its preliminary results for the year ended 31 December 2006, the company made profits after tax of £15.4m and transformed its combined ratio from 220% in 2005 to 74% in 2006.
Advent said the improvement reflected a benign claims environment, after being severely impacted by Hurricanes Katrina, Rita and Wilma.
“The significant improvement in 2006 results compared with 2005 is due to higher earned premiums from the company's increased share of Syndicate 780's supported capacity in 2006 and the absence of any significant catastrophe events,” it added.
But, analysts have said that despite the improved results, they were 15% lower than forecast at £26.1m.
Numis Securities, commented: “Following the 2005 losses and exceptionally favourable trading conditions for Advent's catastrophe focused book of business, there may be some disappointment that 2006 earnings are not stronger and we therefore expect the shares to be weaker today.”
Meanwhile, forecast results for Syndicate 780, the Lloyd's business managed by its wholly owned subsidiary, Advent Underwriting Limited, show a profit of 20% to 25%.
