Novae reports ’successful’ 2008

by David Masters

Story link: Novae reports ’successful’ 2008

Lloyd’s insurer Novae has reported its 2008 results, falling narrowly short of the firm’s record profits posted in 2007.

Pre-tax profit for full year 2008 was £40.2 million, compared to £41 million in 2007.

Chief executive Matthew Fosh pointed out that the near record results were achieved despite a “much more difficult underwriting and investment environment.”

Gross premiums for the year increased to £345.7 million, compared to £302.6 million in 2007, although this increase was largely offset by $40 million in payouts for hurricanes Gustav and Ike.

Investment income increased to £50 million, compared to £46.8 million in 2007.

Net tangible assets per share grew to 410.8p, up from 366.7p a year earlier.

Chairman John Hastings-Bass said: “Against the backdrop of poor results from many underwriting businesses and some catastrophic results from the rest of the financial sector, Novae steered a steady course.”

The group predicted that rates will increase by 5-10% in 2009, with property and aviation seeing the largest increases.