Lloyd's insurer, Novae Group, has seen its profits fall by more than £10m in the first six months of 2006 compared to the same period last year.
Novae recorded an underlying profit before tax of £16m for the first half of 2006, down from £27.7m in the corresponding period of 2005.
Novae said underwriting profit from the continuing business fell to £26.8m (2005: £43.3m).
The first half combined ratio for the ongoing business jumped 12 points to 83.8%, (H1 2005: 71.9%). A move which the group accounted for by a "deterioration in the claims experience in the run off of the Fusion business, which was sold last year."
However, despite the results, Matthew Fosh, chief executive, was upbeat. In the statement accompanying the results, he said: “It has been an important six months for us, during which we have turned Novae into a forward-facing business no longer dominated by the debilitating legacy of its past.
"The formation of our new FSA-regulated insurance company achieved our goal of platform diversification. We are delivering profits in line with our expectations. Subject to catastrophe loss experience in the second half, we remain upbeat about the prospects for the year.”
The company also announced that David Henderson is to join the board as an independent non-executive director. In addition he will become chairman of the remuneration committee.
At 10am, shares in Novae Group were down 2.70% to 27p.
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