Bermuda-based Sovereign Risk Insurance, a political risk joint venture between XL and Ace, recorded gross written premium of $60.5m, net written premium of $48.6m and underwrote 22 new political risk insurance policies in the 12 months to June.
In releasing results for its sixth financial year, Sovereign said it had paid three claims for events related to the economic crisis in Argentina. These were largely offset by recoveries from a previous claim in Indonesia.
Price Lowenstein, the president and chief executive of Sovereign, said: "We are pleased to post such strong financial results for a period that presented challenges for emerging market investors, lenders, and insurers alike....
"We believe that our experience this year confirms the value of our product and services. We are encouraged by signs of a pick up in finance and investment flows into emerging markets and look forward to continuing to serve our clients' needs going forward."
Sovereign's portfolio exceeds $5.9bn of exposure spread over 75 emerging markets. Sovereign's clients include financial institutions, national export credit agencies, leading multilateral agencies and multinational corporations.
