Novae boosts premium income 48%

Lloyd's insurer Novae increased gross written premium (GWP) 48% in the first quarter of this year.

GWP stood at £167.2m, an increase on the £113.1m posted in the same period quarter last year.

The insurer achieved 2% rate increases in the first quarter compared to 5% last year.

Chief executive Matthew Fosh said: "In December last year we set out specific measures within a clear timeframe to raise the Group's return on equity across the underwriting cycle. Four months into 2010 we can report significant progress in meeting these objectives."

Group highlights

• Group gross written premium for the first three months of 2010: £167.2 million, up 48% (Q1 2009: £113.1 million)
• Rate increases averaged 2% for the first quarter (Q1 2009: 5% increase)
• Investment return during the first three months of 2010: £8.9 million (Q1 2009: £7.5 million). This equates to a return on average invested assets of 0.85% for the quarter (Q1 2009: 0.68%)
• Significant progress in the group's three key strategic goals: (1) achieving specific financial and operational targets in respect of Novae Re; (2) releasing of NICL surplus capital; (3) reducing reinsurance spend and eliminating cost inefficiencies

In a statement, Novae added: "Up to and including the financial year ended 31 December 2009, Novae has reported four operating segments under IFRS 8: Specialty, Property, Liability and Aviation & Marine.

"As a result of the group's expansion and development since 2006, the board has re-considered the format of the information it requires to discharge its role in managing the group. It has concluded that the most useful segmentation is between property/short-tail and liability/long-tail. Therefore, with immediate effect these two segments will form the basis of Novae's financial reporting. Comparative information for earlier periods will be re-presented on the basis of these two segments.

The insurer said it continues to expect Novae Re to write £90-100m of gross premium in 2010.