Brit has said it expects its pre-tax profit for 2005 will be in the region of £60m, significantly ahead of market consensus expectations.
The expected profit takes into account a revision in the original provisions for Hurricanes Katrina, Rita and Wilma.
Brit said it has strengthened total reserves for these windstorms from $325m net of reinsurance recoveries and reinstatements to $385m. This strengthening is in the energy account, where Brit is largely a follower and relies on third parties for loss reports, which remain slow to materialise.
Dane Douetil, chief executive of Brit, said: “Despite insured catastrophe losses in 2005 being the highest on record, we anticipate producing pre-tax profits for the year well ahead of current market expectations and I am particularly pleased with the contribution made by our non-catastrophe underwriting portfolios.
“Our expected profit demonstrates that a well balanced portfolio can generate good positive results, even in an extreme catastrophe year. 2006 has started well and the outlook for trading is positive. With our excellent team of underwriters, improved capital mix, strong rating and broad spread of business we are well positioned to deliver shareholder value”.
