Tawa profits drop 84%

Run-off firm Tawa has made a profit attributable to shareholders of $1.8m in 2010, down from $11.2m in 2009.

Profits from continuing operations improved to $8.6m in 2010, up from a loss of $0.9m in 2009.

But the company sustained a $6.8m loss from discontinued operations, down from a profit of $12.1m in 2010.

The company’s net assets per share remained flat $2.00 year-on-year (2009: $2.02)

In 2010, Tawa extracted $47m from its risk carriers. $35m was received from Reinsurance Company Limited while Tawa also received approval for $12m of capital extraction from its Connecticut domiciled subsidiary PXRE Reinsurance Company. The $12m was used to repay part of the acquisition debt.

Tawa’s CEO Gilles Erulin, said a focus for the company in 2010 was restructuring the business. “We accelerated the transition of our group from a pure run-off acquirer model to a more diversified insurance investor model.”

The company also announced the appointment of two non-executive directors. Tim Carroll, who currently sits on the board of Chaucer and Lisavin Consulting and Hans Miller, who sit on the PRO board.