SVB Holdings said 2004 trading conditions remain highly encouraging, with rate increases of over 10% in speciality lines in the first four months of the year, and an average of nearly 5% across all classes.
For the 2003 year of account, SVB said syndicates 1007 and 2147 showed strong positive development with forecasts for both syndicates having improved.
For the 2002 year of account, SVB said the two syndicates continued to develop well. Syndicate 1241 requires further reserve strengthening, primarily in respect of its discontinued liability reinsurance business, said the company.
For the first four months of 2004 business written achieved an overall rate increase of 4.8%, including over 10% in specialty lines, which accounts for half of the company’s annual premium volume. It also said underwriting discipline had been maintained during the first quarter.
Chief executive Matthew Fosh said: “SVB's current underwriting is good and getting better. Rating and terms and conditions in our core business remain attractive.
“We are still hampered by our inheritance. The ability of the poor underwriting of the soft market to hurt us remains and we are still committed to bearing down on these legacy issues. Across the business current underwriting is strong and good progress is being made.
For 2003, the forecast for syndicate 1007 is 10.0% to 17.5%, and the forecast for syndicate 2147 is 9.5% to 16.0%.
For the 2002 year of account, the forecast for syndicate 1007 is 12.0% to 17.0%, the forecast for syndicate 1241 is (2.0%) to 3.0%, and the forecast for syndicate 2147 is 9.0% to 14.0%.
