SVB forecasts 10% profit for 2002, makes good 2003 start

Lloyds managing agency SVB Holdings has forecast a 10% profit on the capacity across its specialty and property syndicates for 2002.

Posting its latest results, the vehicle said it has enjoyed average rate increases this year of 21% across its syndicates.

For the 2000 year of account, the Specialty business, now focussed into syndicate 1007, posted a loss of 9.8% on a capacity of £150.9m.

Meanwhile its property and business syndicate 1415 (now renamed to 2147) recorded a profit of 4.7% of £30m capacity.

For the 2001 year of account it said there was an improvement in trading performance, with more pronounced rating action proving beneficial.

Syndicate 1007 is forecasting a loss of between 1% and 6% on £150.9m of capacity. Meanwhile syndicate 2147 forecast a loss of up to 5% on a capacity of £40m.

With regards to 2003, SVB said the account had started well.

A statement said: "Across both syndicates the average rate increase achieved in January and February was 21%, with Specialty business achieving 39%.

SVB chief executive Matthew Fosh said: "These latest figures should encourage the market to share my own growing confidence in SVB's prospects. The benefits of concerted management action since 2001 are beginning to flow through.

"The quality of SVB's underwriting staff, the depth of its client base and the extremely favourable trading environment are steadily transforming the outlook for this business. This represents further progress towards restoring SVB's fortunes."