‘Strong performance’ for Advent

by David Masters

Story link: ‘Strong performance’ for Advent

Advent has announced its final results for 2007. The specialist property insurance and reinsurance Lloyd’s insurer reported after tax profits for the year of £19.2 million, compared to £16 million in 2006.

The company’s profit before tax totalled £25.2 million. The return on shareholder’s equity for the year was 21.6%. Net premiums earned were £96.0 million, compared to £81.7 million in 2006.

Net assets per share were up 22% by the end of the year, reaching 26.7p on 31st December. Advent’s 2008 AGM has recommended to pay a first dividend since listing of 1.25p per share.

The company’s underwriting performance for the year was also strong. This was in spite of a rise in attritional catastrophe losses.

All lines of the company’s business reported underwriting profits. The non-marine reinsurance portfolio made an underwriting profit of £16.3 million. Advent Re’s first year was a success, contributing £4.9 million in underwriting profit.

Chairman of Advent Capital (Holdings) PLC, Brian Caudle, said of the results: “I am pleased to report another year of strong performance with return on equity of 21.6% and an underwriting combined ratio of 78%.

“Advent Re had a very successful first year of operation with no claims. Although market conditions are becoming more competitive, these are conditions where we have successfully traded in the past while maintaining our underwriting discipline and focus on underwriting profit.”