Hampden hit by bodily injury

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Catastrophes and bodily injury motor claims wipe out profits

Lloyd’s limited liability investment vehicle Hampden Underwriting, has said H1 premiums written rose 7% to £5.7m but it made a net loss of £58,000 compared to a profit of £138,000 over the same period last year.

Chairman Sir Michael Oliver said: “Our result at mid-year has been adversely affected by both the catastrophe losses in the first six months and by the much publicised deterioration in the operating performance of UK motor business which has impacted the 2008, 2009 and 2010 years of account reducing our result for the period by some £350,000.

“It is important to remember however, that the full year results normally tell a different story to the half year, as indeed was the case last year and in the absence of an abnormal loss pattern in the remaining months of the year, we fully expect a satisfactory outcome for 2010.

Three-year basis

“On a three-year account basis, the portfolio of syndicates supported by Hampden Underwriting continues to outperform Lloyd's on both the 2008 and 2009 accounts with Hampden Agencies (our Lloyd's adviser) estimating profits of 6.11% on capacity for 2008 and 12.68% for 2009.

“They are currently targeting a profit of 5% on capacity for the 2010 year of account although it must be borne in mind that the hurricane season usually continues until the end of November. In this respect the current year is still very much on risk.

“Whilst current prospects are undoubtedly more challenging, we remain confident of the resilience of the syndicates in our portfolio.

Nameco purchases

“I said in my statement in 2009 that our policy of expansion through the acquisition of Namecos remained an important part of our strategy and therefore I am delighted to report that in August this year we were able to buy Nameco (No 321), thereby increasing our underwriting by a further £800,000.

“It is also gratifying that despite the mid-year result, the cash balance, held by the Group, has increased by £571,000.