Gibraltar-based Elite’s profit more than doubles

Gibraltar-based insurer Elite made a profit before tax of £11.4m in the year to 31 March 2016, up 147% on the £4.6m it made the previous financial year.

The improvement was driven by an increase in both underwriting profit and revenue.

Underwriting profit was up 21% to £17.4m (2014/15: £14.4m) and the company’s combined operating ratio for the year was 87.5%. Gross written premium increased 4% to £166.9m (2014/15: £160.4m).

Elite said it was able to improve underwriting profit by taking on and concentrating on profitable schemes and placing underperforming business into run-off.

The company added that it has been able to write new business in Spain and Italy and that its property, financial products and after-the-event legal expenses books in the UK “had performed well”.

Elite chief executive Jason Smart (pictured) said that the result had been achieved in a difficult year, which included the introduction of Solvency II on 1 January 2016 and increased regulatory oversight and “inevitable pressures on our team” as a result of the insurer’s growth.

But he added: “Nonetheless, we have achieved a substantial increase in profitability as well as a comfortable increase in our surplus over solvency requirements under both Solvency I and Solvency II. I applaud our team for the fantastic efforts.”

The company said that notable achievements in the year included the renewal of a large property scheme and a number of other valuable schemes and receiving approval from the Solicitors Regulation Authority to set up in-house law firm Elite Law.