Omega profits tumble

Omega Insurance Holdings posted a pre-tax profit loss of more than $30m, but net written premiums increased for the full year 2008.

Profit before tax fell to £28.2m (2007: $59.5m) and net written premiums rose to $224.6m (2007: $196.3m). Group combined ratio increased to 101.4% (2007: 79.3%).

The insurer raised £130m in December, which the firm says "creates financial flexibility and enables us to take advantage of the current and future opportunities in our core markets."

In a statement, the company said it saw "significant opportunities in all our existing core lines as a result of the impact of Hurricane Ike coupled with widespread balance sheet stress elsewhere in the industry, with limited fresh capital available."

It added that its multi-platform strategy leaves it well positioned to reach into core markets where opportunities are emerging.

Richard Tolliday, chief executive of Omega, said: “Despite one of the worst years on record for insured losses I am delighted that we have achieved a profit in line with market expectations. We are also forecasting an underwriting profit for Syndicate 958 for the 2008 year of account, despite the losses suffered from Hurricanes Ike and Gustav, which would extend its record of underwriting profitability to 29 years.

The support we received for our capital raising from both existing and new investors in December is testament to the belief shareholders have placed in us and ensures that we are in a strong position to take advantage of rapidly improving markets.”