LLoyd's insurer reports pre-tax profit of £3.9m
Lloyd’s insurer Chaucer Holdings’ profits have been slashed in the first half of the year on the back of poor investment returns and high claims costs.
The insurance group reported pre-tax profit of £3.9m for the six months to the end of June 2008, down over 90% compared to the first half 2007.
Ewen Gilmour, Chaucer chief executive, said: “The first half of this year has been tough, with a difficult investment environment and above average claims combining to hold back our headline result. However, the Board remains satisfied with the continued development of the business during the period.”
Gross written premiums were £355.3m for the first half, up from £323.9m in the 2007.
Chaucer’s combined ratio deteriorated to 97% from 84.4% in the first six months of last year.
Gilmour added: “While recognising the inherent difficulties in making forecasts with the hurricane season underway and continued financial market turbulence, the Board believes that the prospective returns for the remainder of 2008 and 2009 should be satisfactory for this stage of the market cycle.
“In addition to growth opportunities identified within the UK motor market, we believe that we are close to the bottom of the cycle for some key international classes, which should provide us with opportunities for further selective development of our business next year.”
