Advent Capital 2007 Results- 22.02.08
Advent Capital released its results today which are available here.
Syndicate results update
Syndicate 780
The 2005 YOA will be closed at a loss of 74.37%, within previous forecasts (70% to 80% loss).
The forecast results for Syndicate 780's open years of account are set out below, including the
2007 year of account for which an initial forecast would normally be made in the second quarter
of 2008. An early indication of the potential result is appropriate, recognising that the forecast
result will be affected as the remaining premium income is earned in 2008.
2006 Profit 20% to 25% (Q3 Profit 20% to 25%)
2007 Profit 15% to 20% (Q3 NA)
Syndicate 2
Syndicate 2 had an uneventful year with positive claims development of £1.2 million principally resulting from the closure of old outstanding claims which had shown little or no activity in recent years. Syndicate 2 has been in run-off since the 2002 year of account. Its claims provisions principally consist of its marine and aviation and excess of loss reinsurance accounts, with outstanding gross and net World Trade Center (WTC) losses of £27.4 million and £23.4 million respectively (2006: £29.6 million and £26.2 million respectively).
Advent Capital Financial Results
· Corporate objectives for 2007 met or exceeded
· Profit before tax of £25.2 million
· Return on equity of 21.6%
· Successful first year of operation for Advent Re with underwriting profit of £4.9 million and no losses
· Improvement in prior years' claims of £1.1 million
· Recommendation to 2008 AGM to pay first dividend since listing of 1.25p per share
|
2007 |
|
2006 |
|
|
|
|
Profit before tax |
£25.2m |
|
£22.9m |
Profit after tax |
£19.2m |
|
£16.0m |
Net premiums earned |
£96.0m |
|
£81.7m |
Combined ratio |
78% |
|
74% (1) |
Earnings per share |
4.7p |
|
4.3p |
Return on equity |
21.6% |
|
25.1% |
Net assets per share |
26.7p |
|
21.9p |
Net tangible assets per share |
24.9p |
|
19.9p |
(1) Combined ratio of 83% excluding underwriting profit on exchange of £7.0 million |
Current trading outlook
· 100% of Syndicate 780's 2008 capacity of £135 million
· In line with management's expectations, trading conditions for 1 January 2008 renewals were competitive, with overall premiums written in line with plan
· The Company's principal lines of business remain at attractive levels
· Terms and conditions are generally holding firm despite downward pressure on rates for most classes and territories
· Syndicate 780's and Advent Re's gross and net catastrophe exposures maintained in line with plan
· Brian Caudle, Chairman of Advent Capital (Holdings) PLC commented:
"I am pleased to report another year of strong performance with return on equity of 21.6% and an underwriting combined ratio of 78%. Advent Re had a very successful first year of operation with no claims. Although market conditions are becoming more competitive, these are conditions where we have successfully traded in the past while maintaining our underwriting discipline and focus on underwriting profit".
|
