Tawa posts $21.6m loss for 2011

Run-off specialist Tawa suffered an after tax loss of $21.6m during 2011 as the company continued its ambitious growth plans.

That compares to a profit of $1.8m in 2010.

Last year the company used $22.8m from PXRE Reinsurance Company to repay the Group’s debt.

During the same period Tawa acquired Oslo Reinsurance Company (UK) Ltd and formed QX Reinsurance Company Ltd.

It also funded two new projects – Q360 Ltd, a London-based broker, and Lodestar Marine Ltd, a UK MGA – and signed off on the Hamburger Internationale Ruckversicherung acquisition, the holding company for the Chiltington group of companies.

Tawa’s chief executive Gilles Erulin (pictured) said: “Over the last two years, we have moved from being a pure run-off risk carrier towards being a multi-segment player in the insurance market. Last year was a key year in this transformational shift as Tawa significantly expanded into the service segment of the international insurance industry.

“Last year was focused on transforming and investing, while 2012 is to be focused on operational optimisation and profitability.

“In 2011 we delivered our strategic goals as to the expansion of our scale and scope. For 2012 our number one priority is to re-establish our earnings momentum and cash flow generation.”

Shareholder assets after tax dropped slightly to $197.2m (2010: $226.3m), while net assets per share were £1.13 (2010: £1.26).

The company has no dividend planned for 2011.