Surge in marine, aviation and political risk GWP offsets declines in property and casualty

Novae reported gross written premium of £515.1m in the first nine months of 2014, up 6.3% in the $484.6m reported in the same period last year.

Chief executive Matthew Fosh said the growth had left the Lloyd’s insurer in a “strong position” for next year, despite falling rates.

Novae’s growth was driven by its marine, aviation and political risk book, where gross written premium increased by 37.7% to £193.8m (First nine months of 2013: £140.7m).

This offset a 6.3% fall in property GWP to £206.5m, and a 7.1% decline in casualty GWP to £114.8m.

The overall growth came despite average rate reductions of 3.3% across the business.  

The company also enjoyed a small boost to investment returns, which increased to 1% from 0.7%.

Fosh said: “Good new business growth, active capital management and disciplined underwriting has allowed us to build on the positive momentum gained in the first half of the year.

“This focus, in addition to another quiet period for catastrophe events, leaves the business in a strong position for the final quarter and going into 2015, despite the softening pricing environment.”