Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 17th of July 2018
October 30, 2008

Advent profit plummets 99%

by David Masters

Story link: Advent profit plummets 99%

Lloyd’s of London insurer, Advent Capital Holdings Plc, has reported its nine month interim results, with profit for the period almost completely wiped out by catastrophe payouts for hurricanes Ike and Gustav.

Net income for the period fell by over 99% to £26,000, compared to £7.8 million in the first nine months of 2007.

Gross written premiums increased 32.8% on year to £144.5 million, compared to £108.8 million last year.

Gross income rose 32% to £105 million, although the rise was offset by a doubling in claims incurred to £66.1 million, compared to £34.4 million in the year ago period.

Reinsurance to close claims hit £34.2 million, up from £6.1 million in the same period last year.

Pre-tax losses for the nine months up to 30th September were £1.9 million.

This is compared to a pre-tax profit of £12.9 million in the same period last year.

A statement from the company said as long as no more catastrophes strike before year end, then it will absorb losses from hurricanes Gustav and Ike into its full year earned catastrophe margin.

The statement added that Advent is ‘well positioned’ to see its way through ‘difficult and uncertain times’.

Advent stock fell 2.9% to 165 pence per share following the news.

This gives the company a market value of £67 million, 33% lower than at the beginning of 2008.

 

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