Lloyd's insurer Kiln saw its share price slump dramatically in what its finance director Roy Butler called “a complete overreaction” as it released results for the six months to June 30.
The company has seen more than half its market value evaporate over the last 10 days with a sharp crash before the announcement of interim results.
The crash, from more than 75p a share before the terrorist attacks in the US to less than 35p yesterday (Thursday), follows an announcement that Kiln's syndicates 510 and 557 will incur losses of £45m due to the atrocities.
Kiln owns about 51% of the syndicates' capacity, leaving the listed company's exposure at about £16m or 16p a share.
Directors yesterday gave a presentation to analysts in an effort to bolster the company's stock market performance.
Mr Butler said later the fall in the share value was “a complete overreaction.”
He blamed it on “one or two smallish sellers” whose actions he said could drive the price down.
He said: “Like all these things, the lack of liquidity in the integrated Lloyd's vehicle sector doesn't help.
“All the time we are small and specialist it's a problem we have to live with.”
Chief executive Edward Creasy said trading conditions would improve and predicted rising rates and reduced competition.
He said: “There's no doubt at all that what happened will change the market.
“If you take the World Trade Centre event out of it, the probability is th
