Advent Capital Profits Up To £13m

Lloyd’s insurer Advent Capital has today unveiled a 50% rise in profit figures for the third quarter of the year, reflecting a significant rise in revenues with more efficient operative cost centres for the period.

The firm announced today an increase in profits from £8.2 million over the third quarter last year to £12.9 million over the same period in 2007. The increase reflected an increase in overall premium receipts to £115.6 million from £105.9 million over the same period last year.

The company accounts increasing premiums through increasing risk amidst many of its core markets, reflected in a high net notified loss ratio for this year as compare to last, for its growth in profitability. Despite a 100% increase in payouts as a percentage of premiums, profitability overall showed an increase on the period.

Net notified loss was up from 12% through the third quarter in 2006 to a staggering 24% in 2007, an area the company has pledged to look into controlling in future quarters to avoid hindering profitability and escalating premium costs.

Additionally the firm’s general reserves have been compounded significantly over the period by around £2.5 million, whilst the total of non-US losses less reinsurance recoveries was recorded at a stable £9 million for the period.

One factor of note for the longer term was that estimates for loss recovery from the hurricanes of two years ago have not escalated by any significant margin and look to remain stable over the coming periods.

Speaking today on the results, the company said that whilst it was happy with the performance shown over the period it remained sceptical as to the outlook for the coming period, particularly as a result of the devalued dollar which could result in an overall slower growth in premiums and net profits over the end of this year as a result of its significant majority of dollar written premiums.

Category: Financials, Lloyds TSB Insurance News