Ecclesiastical profits halve in 2007

Ecclesiastical today reported a pre-tax profit of £35.6m for 2007 - less than half that of the £77.1m it made in 2006 - a group underwriting loss of £6.7m and a combined ratio of 102.9%.

The company said in a statement that underwriting performance had been affected by the largest claims losses for several years and continued market pressure on premiums.

The group made an underwriting profit of £27m in 2006 while reporting a combined ratio of 88.5%.

Commenting on the results, Group Chief Executive Michael Tripp said: “There’s no doubt it has been a difficult year for the entire industry. But I’m delighted that we’ve weathered the storm. We have produced another strong profit, further bolstering our shareholders’ funds and strengthening our financial position for the future.

“The summer floods and the theft of metal from churches prompted the biggest claims costs we have seen for several years, 25% higher than 2006. Competition in the market also continued unabated, putting extreme pressure on premiums.

“Not only did we succeed in helping thousands of customers through difficult times, but we’re also proud that we’ve retained nearly 90% of our customers. So we’re sticking by them, and they’re sticking by us too.

“All-in-all in the context of difficult market conditions I’m very pleased with these results, and we continue to look forward to a positive future.”

Ecclesiastical is a specialist insurer of charities, schools, the care sector, churches and historic buildings. Founded in 1887 to provide insurance for the Anglican Church, it now offers a wide range of commercial insurances, as well as home, travel and wedding insurance, selling through brokers and direct.

Ecclesiastical also provides a range of financial services through IFAs and direct, including a range of ethically-screened investment funds."