LONDON, Dec. 18, 2003 (PRIMEZONE) --
Brit Insurance Holdings PLC
Trading Update
Brit Insurance Holdings PLC ("Brit" or "the Group"), the UK general insurer is pleased to make the following pre-close season trading update.
Underwriting environment
Underwriting conditions in our target areas continue to be exceptionally positive. Continued high rates and low loss incidence have meant that the Group continues to meet its own internal forecasts. So far, the current renewal season is firmer than we would have expected with the reinsurance account in particular holding up well.
Brit anticipates that the wider insurance industry will see further deterioration in the results for 2001 and prior years. Because of the Group's very small exposures to those years and its conservative reserving policy, this is expected to have little or no effect on Brit. We anticipate that the reserve strengthening in the industry will be a factor in maintaining underwriting discipline and have a continuing positive effect on insurance rates.
Capital requirement
We note developments on industry capital adequacy models, both at company and group level, particularly FSA Consultation Papers CP190 and CP204 which will have the effect of increasing capital requirements for insurers. Brit has anticipated this and is therefore well positioned for these changes which the industry will need to begin to implement during 2004. This gives us great confidence for longer term stability of performance while providing a satisfactory return on capital to our shareholders.
Neil Eckert, Chief Executive of Brit, said: "We have experienced another year of exceptional underwriting conditions. Our target areas, particularly the UK commercial market, are seeing continued opportunity for profitable growth and we are pleased with the progress we have made. We have taken strong decisions during the year, such as our decision to stop underwriting airline business, and have remained firm on our policy of allocating capital to classes with the best prospect for high returns.
The outlook for 2004 is positive and we will continue to deliver on our objectives. We look forward to announcing our final results on 2nd March 2004."
This information is provided by RNS The company news service from the London Stock Exchange