Insurance company will fold into Lloyd’s syndicate
Novae will fold Novae Insurance (NICL) into its Lloyd’s syndicates business to free up £60m of spare capital.
NICL's in-force policies, subject to regulatory and court approval, will either be transferred to the Group's Lloyd's business or run-off. This business transfer process is expected to be substantially complete during 2010.
Novae said these steps would potentially improve post-tax returns by up to 3%. It has set an objective for a post-tax cross cycle return on equity of 13-15%.
Reinsurance cut too
It also said its "Willingness To Lose" plan to reduce reinsurance bought would improve post-tax returns by 2%
Structural and organisational savings would add around 1% to post-tax returns by 2011, Novae claimed.
It said its as yet timescale-free search for a third to run off of the 2002 and prior underwriting would improve post-tax returns by up to 2%, subject to terms
