Currency hits Hardy’s profits

Bermuda-based Lloyd’s insurer Hardy has announced pre-tax profits fell from £23.1m last year to £20.1m this year because of currency changes. It said its profit before tax and foreign exchange movements was £26.7m, up from £4.4m.

Hardy’s combined ratio before foreign exchange movements fell to 78.1% from 91.2%.

Financial highlights £000 (2008 in brackets)

• Gross Written Premium 241,996 (172,770)
• Net Earned Premium 176,630 (120,799)
• Total underwriting return 34,346 (8,667)
• Profit before tax and foreign exchange 26,741 (4,378)
• Profit before tax 20,100 (23,093)
• Combined Ratio 78.1% (91.2%)

GWP by division £000 (2008 in brackets)

• Marine & Aviation 48.0 (45.9)
• Non-marine property 37.2 (28.8)
• Specialty Lines 36.8 (31.3)
• Property Treaty 76.9 (48.2)
• Total 198.8 (154.2)

David Mann, chairman said: "I am pleased to report that the Hardy group has maintained its record of profitability, returning a profit of £20.1m, after taking into account a foreign exchange loss which partly reverses last year's gain.

“The profit before tax and foreign exchange was £26.7m (2008: £4.4m). Just as importantly, we have made good progress in implementing some of the key elements of the strategic growth plan on which continuing profitability and success are based.

"The effect of the global recession and the turmoil in financial services indicate challenging times ahead. Challenging conditions, however, create opportunities and we believe that Hardy has the ideal base from which to take full advantage."

Building blocks

Barbara Merry, Hardy's chief executive, said: "Hardy has performed consistently well during a tough year for insurers and reinsurers. We achieved more than our targeted growth in 2009.

“This phase of our development has been very much associated with putting new skills and building blocks in place. We now seek to exploit these advantages.

"The Hardy team that we have assembled certainly gives us grounds for optimism about the longer term future of our business."