Novae posts 6% organic growth in H1 results

Lloyd’s syndicate Novae has posted a 6% growth in gross written premium (GWP) for the first half of 2014, despite a challenging rates environment and a weakened US dollar.

It wrote £362.6m GWP in the six months to 30 June and improved its combined operating ratio by five percentage points to 90.8% (H1 2013: 95.8%).

Pre-tax profits climbed to £21.3m (H1 2013: £21.1m), while its underwriting contribution increased by 89% to £19.7m (H1 2013: £10.4m).

Novae group chief executive Matthew Fosh said: “Novae continues to deliver an improving performance despite a more challenging rating environment, low interest rates and a strong sterling.

“We continue to invest in the business, attracting talented people and developing new opportunities, leaving us well placed to build on the good progress we have made.”

Divisional results

In December, Novae announced a change to its operating structure and created three trading divisions: property; casualty; and marine, aviation and political risk (MAP).

The MAP division posted the strongest growth out of the three for the first six months of the year, posting a 23% rise in GWP to £120.3m (H1 2013: £104.8m).

The property division also performed strongly, with £163.8m GWP, which was level with last year’s results at constant rates of exchange.

But the casualty division suffered a 3% drop in GWP to £78.5m (H1 2013: £86.4m), after the group reduced its exposures across several classes.

In its results this morning Novae also announced an interim dividend of 6.6p, up 10% on the 2013 interim dividend.

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