Wellington, the UK insurer that operates Lloyd's Syndicate 2020, Wellington Underwriting Inc and Aspen Re, has reported a sharp rise in profits for the six months to June thanks to strong underwriting conditions and its acquisition of Aspen Re.
The group said pre-tax profit rose to £23.3m from £3.7m in the first six months of 2002. As a result of the improvement, it is resuming dividend payments with a 0.35 pence per share interim payout.
Earnings per share for the six months doubled to 3.2 pence, from 1.6 pence a year earlier, as gross premiums written in the period rose by 10% on a like for like basis. The group's first half combined ratio improved to 92% from 106%.
Chairman John Barton was upbeat about the group's prospects for the remainder of the year.
"A number of initiatives that we have taken in the last twelve months to grow the business are now making important contributions to the Group, including Wellington Underwriting Inc and Aspen Re," Barton said.
"Insurance rates continue to be strong and Wellington is well positioned to continue to take further advantage of the favourable market conditions in the second half of the year."
In a statement the group said its core business at Lloyd's would continue to take a cautious approach even in the current buoyant market for reinsurers.
"We will continue to buy comprehensive reinsurance programmes, even if this may have the effect in certain years of dampening returns. It is a policy which has served Wellington, our capital providers and our core group of reinsurers, well over the years. We are not prepared to roll the dice and put shareholders' and other capital providers' assets to unacceptable risk."
At the same time the group said it expected continued profitable growth at Aspen and Wellington Underwriting Inc.
