Near 38% growth in reinsurance business helps Brit’s figures

Brit Insurance announced this morning that its reinsurance business and its UK insurance arm had boosted business in the first nine months of year helping group GWP rise 19% to £1,334.4m.

Financial highlights for nine months (2008 in brackets)

  • Brit Global Markets £660.0m (£612.7m)
  • Brit Reinsurance £338.0m (£245.4m)
  • Brit UK £335.3m (£262.1m)
  • Other underwriting £1.1m (£1.4m)
  • Group £1,334.4m (£1,121.6m)

Premium rises by business

  • Brit Global Markets 4.7%
  • Brit Reinsurance 7.8%
  • Brit UK 3.4%
  • Group 4.8%

Dane Douetil, chief executive officer, said: "There has been a continued focus on portfolio management during the quarter and our decision to grow the catastrophe book whilst rebalancing the Global Markets business is beginning to bring tangible benefits.

“The UK business continues to make steady progress benefiting from a slight rate tailwind and the increased penetration that comes with becoming an established carrier.

“Our investments have had a further good quarter but returns are likely to be muted in 2010 owing to narrower credit spreads and the low level of yield available from government securities.

Looking forward

"As we look towards 2010 the rating environment for the Reinsurance and Global Markets divisions is finely poised and we remain alert to the opportunities and threats this will bring.

“The direction of the UK market is more clearly positive with further rate improvement undoubtedly required to address certain areas of inadequate pricing. With a diversified underwriting platform already established, the Group is well placed to manage its way successfully through an ever-changing insurance market."

Reinsurance rising

Britis said: “Brit Reinsurance continued to take advantage of improved rates and terms and conditions across its portfolio with gross premium written growth of 17.8% to 30 September 2009 at constant currency.

“The Property Treaty North America (catastrophe and risk) account represents 34% of the Reinsurance portfolio and to date has experienced low claims activity.

“Other classes have seen good trading conditions including Casualty Treaty which continues to benefit from low claims frequency in catastrophe lines and materially higher rates with lower exposure in longer tail lines.