LONDON, UK, Sept. 23, 2003 (PRIMEZONE) -- Brit Insurance Holdings PLC (Other OTC:BTIHF)(Brit), the UK general insurance group, announces record interim results, substantial premium growth and continuing positive market conditions.
Highlights
* Profit before tax of GBP31.0m as at 30 June 2003 (30 June 2002: loss GBP4.3m) * Basic earnings per share of 2.82p (30 June 2002: loss of 1.26p) * Group combined ratio of 89.2% (30 June 2002: 90.2%) * Gross written premium increased by 67.7% to GBP666.2m (30 June 2002: GBP397.3m) * Strong growth in the key UK Commercial markets. * Successful withdrawal from non-core businesses. * Trading conditions remain favourable with a positive outlook.
Financial Change 6 months to 6 months to 12 months
Highlights 30.06.2003 30.06.2002 to
GBPm GBPm 31.12.2002
GBPm
Gross + 67.7% 666.2 397.3 662.7
premiums
written
Net + 87.6% 544.1 290.1 522.2
premiums
written
Earned + 135.7% 286.4 121.5 325.3
premiums
net of
reinsurance
Operating + 1096.7% 35.9 3.0 25.0
profit
before tax
(based on
longer term
investment
returns)
Profit on + GBP35.3m 31.0 (4.3) 10.0
ordinary
activities
before tax
Basic 2.82p (1.26)p 1.11p
earnings
per share
Net assets 68.4p 63.1p 63.7p
per share
Net 60.3p 57.2p 59.6p
tangible
assets per
share
Combined 89.2% 90.2% 94.3%
ratio
Commenting on the results Clive Coates, Chairman, said "Brit has had a record first half and we are building real earnings momentum. We have seen further steady improvement in our combined ratio to its best ever level. We are excited about our future prospects."
Outlook
We have built a strong specialist UK insurance company which operates alongside a wholly owned major syndicate in the Lloyd's market. This gives us a flexible trading platform offering high quality security to our policyholders.
Lloyd's new franchise arrangements and the corporate governance and capital adequacy standards demanded by the FSA will play a significant role in maintaining the standards of a well managed and well capitalised UK insurance market. We fully support this regulatory regime.
We have been strongly focused in those areas where we see the greatest potential for return on shareholders' equity. This strategy continues and is particularly reflected in the new ventures we have undertaken with the acquisition of renewal rights to portfolios from Gerling and Markel, both of which are ahead of budget and also by the sale of Peoples Choice and our departure from the direct aviation market.
The target markets where we concentrate our capacity are enjoying continued improvements from both a pricing perspective and in terms and conditions. These excellent trading conditions look set to continue through 2004 and into 2005.
The full text of the announcement can be viewed at the London Stock Exchange website http://www.londonstockexchange.com/rns/default.asp
This information is provided by RNS.
The company news service from the London Stock Exchange