2012 profit to be ‘not less than £45m’ says Lloyd’s insurer

Matthew Fosh

Lloyd’s insurer Novae expects to post a profit “significantly ahead of board expectations”, when it reports its results on 7 March.

In a trading update issued yesterday, Novae said it expects underlying profits before tax to be “not less than £45m”.

This compares with stockbroker Shore Capital’s underlying profit forecast for Novae of £32.9m.

Underlying profits before tax exclude one-off costs and foreign exchange losses on non-monetary items.

Novae also revealed that its gross written premiums for 2012 would be in line with expectations, and that the insurance/reinsurance split in its business would be 67%/33% respectively.

The company added that underwriting performance was “particularly strong” and the claims loss ratio is expected to be approximately 57%, primarily as a result of continued improvement in the underlying attritional claims loss ratio across the majority of insurance business lines.

Novae said its reinsurance business benefited from a more favourable catastrophe experience compared with 2011, despite the financial effect of US crop losses and Superstorm Sandy,

Its loss estimates from the events remain unchanged.