Chaucer makes cash call as it returns to profit

Lloyd's insurer Chaucer Holdings has revealed plans to raise £40m to fund a series of acquisitions this year. The cash call came as it reported a return to profit in 2002.

Reporting its 2002 results Chaucer returned to a pre-tax profit of £13.7m, up from losses of £28.4m in 2001. Gross written premiums totalled £260.9m, up from a 2001 figure of £165.6m.

As well as bankrolling "acquisitions of further non-aligned capacity", Chaucer said the proceeds from the rights issue would enable it to increase capacity on its marine syndicates, to take advantage of buoyant rates.

Managing director Ewen Gilmour said: "This funding is an important step of our strategic growth at a time of excellent underwriting conditions. It will enable us to take advantage of these."

He said: "Trading prospects for all our markets remain encouraging."