Ecclesiastical posts £22.5m loss
Ecclesiastical has posted its 2008 results with a pre-tax loss of £22.5 million, significantly down on the previous year’s £35.6 million profit.
Poor investment returns were largely to blame for the performance, with a net investment loss of £52.6 million, compared to a net investment gain of £69.4 million in 2007.
Underwriting performed strongly, however, with a £9.1 million profit, up from an £11.8 million loss the previous year.
The underwriting profit came despite a combined ratio of 100.8%, an improvement on 102.9% in 2007.
Gross written premiums increased 5% on year to £403.6 million.
Michael Tripp, chief executive, said: “The performance of our core business in 2008 was very good.
“However, we haven’t been able to avoid the impact of turbulence in world financial markets.
“It is particularly frustrating that economic conditions and poor stock market returns overshadow it.”
He added that the group has ‘considerable financial resources’ and that he is ‘confident’ of the long-term strength of investments.
Tripp said: “Financial services is probably the most competitive and challenging market in the world to be in at present.
“The failure of some providers and a black cloud of public opinion creates opportunities for those organisations which have a solid financial base and a genuinely different approach to business.
“Ecclesiastical is one of those companies, so we’re confident our success will continue.”
Category: Companies News, Financials, Insurance News
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