Daily Insurance Industry News
Daily Insurance Industry News
Thursday 18th of October 2018
August 27, 2008

Brit Insurance profit falls 50%

by David Masters

Story link: Brit Insurance profit falls 50%

UK-based Brit Insurance has announced its results for the first six months of 2008 with profits at less than half of what they were a year ago.

The general insurer and reinsurer reported pre-tax profits for the period of £49.9 million, compared to £106.8 million for the same period last year.

Despite the fall in profits, the result beat analyst’s forecasts of £47.3 million.

Brit blames the poor result on a volatile investment market that saw the company’s investment income drop from £55.9 million for the first half of 2007 to just £2.1 million.

A statement from the company said that a ‘much better performance’ is expected for the second half of 2008 following a ‘good’ July and August.

CEO Dane Douetil said he is ‘delighted’ with his company’s ‘strong performance’ despite the volatile investment market.

He added that the company has reduced the equity exposure of its portfolio from 8% to 6%, and that the company is on track to achieve its 2008 growth targets of 3-5%.

Gross written premiums for the period increased 3.8% on year to £754.8 million, although combined ratio worsened to 89.4% compared to 87.7% last year.

Shareholders will receive an interim dividend of 7.5p, consistent with last year’s dividend.


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