Omega releases 2004 results

Omega Insurance has announced Syndicate 958's profit for the 2004 year of account, together with the profit forecast for the 2005 year of account and an initial forecast for the 2006 year of account.

Omega achieved a profit of 7.61% in 2004, with a previous forecast range of 5% to 10%. The profit forecast range for 2005 stands at 5% to 10%, compared to 4% to 11%. Omega has also announced an initial forecast range of 12.5% to 20%.

The 2004 year of account sustained the impact of Hurricanes Charley, Frances, Ivan and Jeanne in 2004 and some exposure to the events in 2005. The result is at the midpoint of the previous forecast range announced in November 2006.

The midpoint of the range of profit forecast for the 2005 year of account remains unchanged. Hurricane Katrina in 2005 was the world's largest ever insured, natural perils loss and was followed in the same year by Hurricanes Rita and Wilma. The estimated net cost to the Syndicate from Hurricane Katrina remains as first announced on 12 September 2005. All three hurricane losses in 2005 are contained by the Syndicate's reinsurance programme.

The 2006 year of account is still at an early stage of development. The forecast range assumes a normal claims development and reflects the strong trading conditions and benign loss experience.

Richard Tolliday, Omega chief executive, said: “The hurricanes in 2004 and 2005 have had a significant effect on the results of many insurance companies. It is therefore particularly pleasing to report that Syndicate 958 has continued its unbroken run of underwriting profits since it was established in 1980. This is testament to the balanced nature of the portfolio and our prudent approach to risk management. Our focus remains the same as it has been since 1980, writing short tail property insurance and reinsurance for small to medium sized insureds and reinsureds. This continues to produce relative consistency and low volatility of results and to generate market out-performance over the cycle.”