Chaucer reports GWP up 42%

Lloyd’s insurer Chaucer announced Q1 GWP was up 42.3% to £257.8m from £181.2m last year and said it expected rate rises of close to 6% for the year.

Financial highlights (2008 Q1 in brackets)

• Motor GWP £34.8m (£28.9m)
• Marine GWP £62.0m (£30.6m)
• Energy GWP £38.9m (£29.2m)
• Aviation GWP £12.0m (£6.9m)
• Property GWP £81.8m (£57.5m)
• Specialist Lines GWP £16.8m (£9.6m)
• Nuclear £5.9m GWP (£6.3m)
• Total divisional income £252.2m (£169.0)
• Syndicate participations ?£5.6m (£12.9)
• Run off £0m (-£0.7m)
• Total income £257.8 (£181.2m)
• Reserve releases £11.3m (£9.7m)

Chaucer said: “We achieved a combined first quarter rate increase of 6.3% excluding motor, ahead of our 5.9% forecast for 2009. We forecast premium rates for our underwriting portfolio to increase by 5.9% in 2009, against our previously published forecast of 5.4%.

Underwriting plans

Chaucer announced £75.0m of new capital to support growth, with plans to increase Syndicate 1084 capacity to take advantage of the good underwriting conditions’

Ewen Gilmour, chief executive, said: “This has been an excellent first quarter for the business, with a strong premium income increase of 42% and a healthy investment return of 1.3%.

“Our underwriters have achieved price increases in many classes and, with good conditions continuing to build in key markets, the outlook for the year is encouraging.

“We intend to take full advantage of the market upturn.”