Chaucer H1 profits tumble
by David Masters
Story link: Chaucer H1 profits tumble
Lloyd’s insurer Chaucer Holdings Plc has posted its first half results, with pre-tax profits down 92% on year to £3.9 million.
This is compared to pre-tax profit of £47.9 million for the first half of 2007, and is the worst result for the company in two years.
The London-based company was hit by reduced returns from investments and increased claims.
An ‘unprecedented’ number of high value single risk losses were detrimental to Chaucer’s underwriting performance setting the company back despite an increase in gross written income to £355.3 million, compared to £323.9 million for the first half of 2007.
Losses valued at over £2 million included a pipeline leak in Indonesia, a damaged pipeline in Barkentine, damage to the Cathay Century pipeline, a Tap Oil pipeline leak, and a fire at Severstal blast furnace.
Combined ratio worsened to 97% compared to 84.4% a year ago.
The subprime mortgage crisis and the credit crunch did not result in any significant claims, although the company expects claims to rise as economic conditions in the UK and the US worsen.