Lloyd's insurer is upbeat about results.
Advent Capital said it was “pleased” to break even after losses from hurricanes Ike and Gustav almost wiped out its nine-month profit.
The Lloyd’s insurer took an £18.3m hit from the hurricanes and other sizeable risk losses, reducing its net income to £26,000 for the first nine months of 2008, down from £7.8m for the same period last year.
Neil Ewing, Advent’s investor relations officer, said: “It has been an industry record for risk losses and a difficult year all around for the industry. But we are pleased with our business model and that we produced break-even results.”
Ewing predicted that the market would harden slightly and said Advent had already readjusted its pricing structure for next year.
“We are confident of our business plan for 2009. Whereas we were assuming reductions of 10% across our portfolio, we are expecting an improvement in pricing for marine, injury and property reinsurance and no further reduction,” he said.
Advent fought off a takeover bid from Fairfax in August. Ewing said it was now “business as usual” for the company.
Although Advent had a pre-tax loss of £1.9m, a deferred tax asset from 2005 pushed the company just above the break-even mark.