Chaucer streaks ahead 40% on premium income

by Gill Montia

Story link: Chaucer streaks ahead 40% on premium income

Specialist motor insurer, Chaucer, has reported a stunning first half with premium income up an annual 38.2%, to £491 million, and pre-tax profit soaring 300% to £17.0 million.

Profit before tax and foreign exchange adjustments on non-monetary items stood at £52.6 million, compared with £3.4 million in the same period of 2008.

First-half underwriting profit came in at £28.6 million, compared with £6.6 million in the first six months of 2008, and the firm recorded an average premium rate increase of 5.9%, providing a combined ratio of 91.3%, compared with 97.2% a year earlier.

Chief executive, Ewen Gilmour, attributes the improvements to “an excellent underwriting result and a healthy contribution from our investments as the defensive repositioning of our portfolio realised significant gains”.

Mr Gilmour sums up: “The outlook for the second half of the year and 2010 is also positive, with conditions improving in the majority of our markets. We are well-placed, with our strong underwriting focus and diverse business mix, to benefit from this.”