Rate rises above 6% push GWP up 23.3% for nine months

Chaucer has announced that GWP for the first nine months was ahead of budget and up 23.3% at £650.3m (£527.3m).

It said it achieved premium rate increases of 6.1% across the underwriting portfolio, had a quiet hurricane season an saw UK motor rates rise above claims inflation.

GWP nine months (2008 in brackets)

  • UK £123.4m (£101.7m)
  • Marine £126.6m (£87.7m)
  • Energy £117.8m (£92.2m)
  • Aviation £33.0m (£19.9m)
  • Property £164.4m (£129.6m)
  • Specialist Lines £55.1m (£32.6m)
  • Nuclear £14.0m (£12.1m)
  • Total divisional income £634.3m (£475.8m)
  • Syndicate participations £15.6m (£51.3m)
  • Run off £0.4m (£0.2m)
  • Total income £650.3m (£527.3m)

Chaucer said it had strengthened its reserves in political risk trade credit by £23.5m on a net booked basis and made a net investment return of £11.4m for the quarter (0.9% return on average funds), giving £46.0m (3.6%) for the nine months.

Underwriting plans for 2010

  • Syndicate 1084 underwriting capacity will increase by 11.5% to £707m for 2010
  • Capacity increase to be financed from existing resources, including continued reinsurance support
  • Targeted growth across marine and non-marine portfolio, supported by strengthened underwriting team and distribution initiatives
  • Further growth in UK motor
  • Total underwriting interests on Syndicates 1084 and 1176 will be £638.6m for 2010, an increase of £69.3m or 12.2% on the 2009 total of £569.3m

Ewen Gilmour, chief executive officer, said: "I am happy to report a strong underlying performance in pricing, premium income and investment returns, although the overall result will be held back by the cautious stance we have adopted in strengthening trade credit reserves within our political risk account.

“The prospects for 2010 are encouraging. We expect rates to remain satisfactory overall, although rates for catastrophe-exposed risks will come under pressure if there are no major losses in the final weeks of the year.

“We are also encouraged by the continued momentum of our UK motor underwriting and the ability of our strengthened underwriting teams and new distribution initiatives to take full advantage of the selected opportunities now arising, particularly in the aviation and specialist lines markets."

Lloyd’s increases planned

Chaucer said the Lloyd's Franchise Performance Directorate has approved a 2010 capacity of £707m for Syndicate 1084 (2009 £634m), an increase of £73m or 11.5%, which would be financed from existing resources.

“Our planned underwriting interests on Syndicates 1084 and 1176 are £638.6m for 2010, an increase of £69.3m (12.2%) on the 2009 total of £569.3m,” it said.