Actions hoped to raise post-tax returns by 3%
Novae will fold Novae Insurance (NICL) into its Lloyd’s syndicates business to free up £60m of spare capital. NICL’s in-force policies, subject to regulatory and court approval, will be transferred either to the group’s Lloyd’s business or run off. The transfer is expected to be substantially completed next year. Novae said these steps would potentially improve post-tax returns by up to 3%.
It has set an objective for a post-tax cross-cycle return on equity of 13%-15%. It also said its “Willingness To Lose” plan to reduce reinsurance bought would improve post-tax returns by 2%, and structural and organisational savings would add about 1% to post-tax returns by 2011.
