Company also announces final result for 2005 and open year forecasts for 2006 and 2007, for Syndicate 1183
Talbot has announced Syndicate 1183’s results for the year ended 31st December, 2007 and forecasts for the open years of account.
The profit of Syndicate 1183 was £75m in 2007, down from £83.1m in 2006. Gross written premiums were £343.9m in 2007, down from £352.5m. The combined ratio rose from 72.8% in 2006 to 80.5%.
The final result for 2005 was a profit of £24.6m, representing 8.7% of capacity. The open year forecast for 2006 was £52.6m (17.1% of capacity) and the forecast for 2007 was £37.4m (11.5% of capacity).
Highlights were:
• Gross written premiums of £344m up 3% compared with 2006 at constant rates of exchange
• Successful establishment of Accident & Health and Bloodstock & Livestock accounts
• Benign claims ratio of 43.5% includes £25m prior accident year release (2006: £35m)
• Investment income up from £10.2m to £18.5m on higher returns and strong cash flow
• Net UK GAAP profit of £75m (2006: £83m)
• 2005 Lloyd’s year of account closes at 8.7% profit on stamp capacity.
Commenting on the results and current market conditions, Rupert Atkin, chief executive of Talbot, said: “Given the size of the 2005 hurricane losses in the Property, Energy and Treaty markets, we are delighted to close the 2005 year of account with a profit of 8.7% of stamp capacity, despite being prominent writers of all three of these classes. We believe this vindicates our stance of having a selective balance of specialist accounts.
“Inevitably, given the strong rating environment and benign loss activity of the last two years, trading conditions are now deteriorating, in some classes faster than we would wish. However, we believe our portfolio of businesses continues to have an attractive margin and we are diversifying our distribution in order to secure new business for the syndicate.”
Talbot Holdings Ltd is a segment of Validus Holdings, Ltd. (“Validus”) and has reported its results on a US GAAP basis as part of the consolidated results of Validus and such results can be obtained in the Form 10-K filed by Validus.
