Brit blames loss on foreign exchange charge
Brit Insurance posted a pre-tax loss of £8.7 million for the first half of 2009, down from a profit of £49.9 million in the year ago period.
Net income plummeted to a £6.3 million loss, down from a £37.6 million profit in the first half of 2008.
The Lloyds of London underwriter blamed the loss on a £94.5 million foreign exchange charge.
Profits before foreign exchange on non-monetary items increased 24% on year from £52.3 million to £64.9 million.
Investments gained £59 million, compared to a £2 million gain in the first half of last year.
Combined ratio worsened by five percentage points to 93.8%.
Chief executive Dane Douetil said he was “pleased” with the firm’s investment performance, but “frustrated” at the accounting rules which resulted in the loss.
“The un-intended volatility caused by IFRS’s approach to certain insurance assets and liabilities [had] a distorting impact on our reported result in a given period,” Douetil said.
Shares rose 10.5p to close at 210.5p.
Category: Brit Insurance News, Financials, Insurance News
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