Rate rises as high as 18.4% signal boom time ahead
Brit Insurance announced Q1 GWP growth of 40% to £557.4m from £396.7m for Q1 last year and claimed premiums had risen by as much as 18.4% in marine XL, with an average in reinsurance of more than 8%.
Financial highlights (2008 Q1 in brackets)
- Gross written premium £557.4m (£396.7m),
- 4.6% average premium rate increase on renewal business (decrease of 1.9%)
- Anticipated ultimate claims arising from Hurricanes Ike and Gustav unchanged from 31 December 2008 at $112m net
- Investment loss £8.2m, (£2.9m)
GWP by division
- Brit Global Markets £259.9m (£200.7m)
- Brit Reinsurance £193.9m (£123.6)
- Brit UK £103.6m ($72.4)
Estimated premium increases
- Brit Global Markets 3.6% (1.4%)
- Brit Reinsurance 8.2% (2.7%)
- Brit UK 3.4% (2.6%)
Brit said: “Premium rate changes ranged from +18.4% (marine XL) to -1.9% (North American liability) with an average of +4.6% compared to full year 2008.
“The Group believes that this trend of rising premium rates will continue and may accelerate during the remainder of 2009 in response to industry-wide capital constraints and substantially reduced investment returns.
“Brit Insurance is well placed to take advantage of these opportunities and expects its underwriting portfolio as we enter 2010 to benefit from higher margins than anticipated nine months ago.”
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