Wellington has posted a pre-tax loss of £26.2m for 2005. This compares with a profit of £77.2m for the previous year, as the insurer lost £140m as a result of Hurricanes Rita, Wilma and Katrina.
Wellington's gross written premiums increased by 17% to £523.4m. The company's board authorised a final dividend of 4p.
Preben Prebensen, Wellington's chief executive, called the results “clearly disappointing”.
He added: “Going forward we have responded by adjusting our risk profile, positioning us to benefit from higher rates with less risk to extreme events. We have been encouraged by trading conditions so far this year and we expect the market to harden further.”
Wellington's US businesses, Wellington Underwriting Incorporated and Wellington Specialty, were largely unaffected by the hurricanes and increased their gross written premiums during the year.
