Advent Capital has reported its half year results, revealing market conditions on key lines amongst the best it has experienced. Profit before tax rose £7.6m to £10.1m while net premium earned rose £7.7m to £40.0m. GWP was up £38.1m to £90.4m reflecting its increased share of capacity on Syndicate 780. 2005 hurricanes net loss estimates were stable.
The outlook included:
- Improved terms and pricing across all major sectors of the business are expected to last through to 2007;
- Alert to new opportunities as a result of scarce capacity for catastrophe reinsurance;
- Revised business model with reduced exposure to catastrophes and better coverage terms and pricing; and
- Syndicate 780's forecast result at 30 June 2006, as a percentage of capacity has remained as previously stated, (2004 year of account loss of 17.5% - 22.5%, 2005 year account loss of 72.5% - 82.5%).
Brian Caudle, executive chairman commented, "We have adjusted our business model to ensure that we take advantage of the market conditions which now exist. This model will help us to better withstand major catastrophes while also capitalising on better pricing, coverage terms and conditions, including higher deductibles. We are excited by the opportunities being presented in this current trading environment and look to take full
advantage and at the same time keep to our plan of reducing peak exposures to major catastrophes."
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