But combined ratio up, GWP down
Novae has today reported record pre-tax profits of £41m for the 2007 year – up 31% from 2006.
But gross written premiums were down slightly by £1.3m from 2006 to £302.6m and the combined ratio rose to 90.4% from 81.4%.
Chief executive Matthew Fosh said: “We have a diversified business with sufficient committed capital to write at least £650 million of gross written premiums in a hard market, double the level of income we wrote in 2007. We are confident of Novae's ability to deliver robust and competitive returns.
“We have longer-term capital in place on more attractive terms than at any stage in the past five years. We have enthusiastic and committed employees and we continue to attract excellent new teams to diversify the business while remaining nimble and entrepreneurial. Systems and infrastructure investments are yielding significant benefits, with more to come.
“The trading outlook, on the other hand, has deteriorated from the long and profitable hard market conditions seen over the 2002-2006 period. While we believe that the industry as a whole remains in profitable territory, execution risks are mounting and vigilance is required. Under these circumstances we are managing the business for profitability and capital preservation rather than top-line growth.
“Regardless of when the recovery in rating comes, we have the building blocks in place to respond.”
