Kiln's performance in the first half of 2004 suggests it will exceed the ‘exceptional' results recorded for 2003, said chairman Ian Percy at the company's AGM.
“Kiln produced exceptional results in 2003, achieving a market leading combined ratio of 77% and earning record pre-tax profits of £33.1m, equivalent to an after-tax return on equity of 22.6%.
“The early months of 2004 suggest that the year will exceed this level of performance; in the absence of a major catastrophe, the prospects for 2004 appear to be excellent, with robust and improving syndicate forecasts and strong potential profits in the pipeline from net unearned premiums.
“The rating environment is developing better than many had predicted; Kiln is achieving average renewal rates that are 5% ahead of 2002 rates and 98% of 2003 rates.
“To set these figures in context, the trading environment in 2002 was excellent, and contributed significantly to Kiln's record profitability in 2003. Kiln's capacity position for the 2004 year of account is also strong at £681m, a £24m increase on 2003.
“In summary, Kiln is well positioned to take advantage of the excellent prevailing market conditions in 2004.”
