Daily Insurance Industry News
Daily Insurance Industry News
Saturday 21st of July 2018
March 17, 2008

Novae profits rise 31%

by David Masters

Story link: Novae profits rise 31%

Novae profits rise 31%

Novae has announced its results for 2007, with profits before tax of £41 million, an increase of 31% compared to 2006.

However, the group’s gross written premiums fell by £1.3 million compared to 2006 to £302.6 million, and combined ratio saw a heavy increase, from 81.4% in 2006 to 90.4%.

Matthew Fosh, Novae’s chief executive, said of the results: “We have a diversified business with sufficient committed capital to write at least £650 million of gross written premiums in a hard market, double the level of income we wrote in 2007. We are confident of Novae’s ability to deliver robust and competitive returns.

“We have longer-term capital in place on more attractive terms than at any stage in the past five years. We have enthusiastic and committed employees and we continue to attract excellent new teams to diversify the business while remaining nimble and entrepreneurial. Systems and infrastructure investments are yielding significant benefits, with more to come.

“The trading outlook, on the other hand, has deteriorated from the long and profitable hard market conditions seen over the 2002-2006 period. While we believe that the industry as a whole remains in profitable territory, execution risks are mounting and vigilance is required. Under these circumstances we are managing the business for profitability and capital preservation rather than top-line growth.

“Regardless of when the recovery in rating comes, we have the building blocks in place to respond.”


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