Gross written premiums over £170m, profits at least £22m
Insurer Hardy said its trading result for 2008 would be ahead of expectations.
The Bermuda domiciled specialist insurer and reinsurer said gross written premiums would be in excess of £170m and profits before tax would be not less than £22 million for the year ended 31 December 2008.
Hardy said the property treaty, aviation and marine accounts performed strongly and the group benefited from the strengthening of the major currencies against sterling.
The company's estimate for losses arising from hurricanes Gustav and Ike ad been reduced to $17.6m from its initial estimate of $23 million after all reinsurance recoveries and reinstatement premiums.
The yield on the investment portfolio for the period was 5.2%. Hardy said it had disposed of its remaining equity portfolio in the second quarter of 2008, which had provided some insulation from market volatility. The portfolio now comprises only short-dated government or high grade fixed income securities or cash deposits.
Hardy sait in a statement to the Stock Exchange: "A combination of significant factors including the global financial crisis, the impact of Hurricanes Ike and Gustav, increased levels of attritional losses and a low interest rate environment have resulted in the deterioration of insurance company balance sheets and the reduction of capital in the insurance industry. This has resulted in a much hoped-for hardening of rates earlier than was anticipated.
"As at 1 January 2009, a major renewal date for a number of the Group's classes of business, the Group had written total premium income (before deduction of commissions and brokerage) of £69.1 million, a 41.6% increase on the prior year. Overall renewal rates for the Group have increased by 5.2%."
