Tawa's profits drop 40%

Run-off specialist Tawa's half-year profits dropped to $1.4m today, compared to $2.3m last year.

Chief executive Gilles Erulin : “The group is gaining momentum in its cash investment-cash extraction model. Overall the first half of the year was, once again, benign as to the insurance books we are carrying. Meanwhile we are benefiting from last year’s acquisition of PRO and its sophisticated professional consulting teams."

Highlights

• Profit for the half year was $1.4 million (2009: $2.3 million).

• Group net assets are $223.9 million.

• Net assets per share in US dollars are $1.98 (£1.35) per share.

• A dividend of $35 million was paid by subsidiary KX Reinsurance Company Limited (“KX Re”) to Tawa plc. This dividend represents free cash to the Group.

• Tawa has also received approval for $12 million of capital extraction from its Connecticut domiciled subsidiary PXRE Reinsurance Company (‘PXRE’). The $12 million will be used to repay part of the acquisition debt.

• A final dividend for the year ended 31 December 2009 of 3.75 cents (2.5 pence) per share was paid in June 2010.

• Agreed to acquire Island Capital which, subject to regulatory approval, should complete before year end.

Erulin said: “Tawa has enhanced ability to access portfolio acquisition opportunities and improved stable earnings flow. This move, at modest cost, has significantly enhanced Tawa’s footprint and capabilities in the global insurance market and will fuel our future growth across all segments of our business”.