SVB. SVB cut its estimate for 11 September gross losses by $11m (£7m)as it announced forecasts for its Lloyd's syndicates performance.
But syndicates that would have made a profit are expected t …
SVB cut its estimate for 11 September gross losses by $11m (£7m)as it announced forecasts for its Lloyd's syndicates performance.
But syndicates that would have made a profit are expected to be pushed into loss as a result of the attack. Syndicate 2147, forecast to turn in a profit of between 4%and 9%of its £40m capacity in 2001 excluding the 11 September losses, is expected to lose up to 5% overall.
The worst results are forecast on Syndicates 1212 and 1241,which are both expected to make losses of between 7.5%and 12.5%of capacity.
SVB's participation accounts for 82.6%of Syndicate 1241's 2001 capacity and 67.6%of Syndicate 1212's 2001 capacity.
The best forecasts are for those syndicates on which SVB has 100%of the 2001 capacity. They are Syndicate 575 and Syndicate 2147. Both are forecast to lose up to 5% of capacity.
Hiscox has blamed losses from the WTC tragedy for the "deterioration "of its f recasts for Lloyd's Syndicate 33.
The 2000 year of account for Syndicate 33 has suffered from "late" deterioration, the company said. The 2001 estimate, significantly affected by the WTC losses, may also be affected by the improvement of underwriting conditions over the past year.
Revised forecast for the 2000 year of account is from -5% to -10% while the 2001 forecast is -2.5% to -7.5%.
The syndicate's capacity for the 2002 year of account has increased from £504m to £655m through qualifying quota share (QQS)reinsurance and Hiscox plans to increase this further for 2003 to £706m.
Swiss Re's net income dropped 91%in the first half of the year compared to the same period last year. Bad investment results and a SFr250m (£108m)share of the cost of floods across Europe all hit the company's results for the first half of the year.
The reinsurer is looking to squeeze more money out of the direct market after its net income fell to CSFr118m (£51m)in the first half of 2002 from SFr1.34bn (£581.4m)in the same period last year.
The drastic fall was caused a plunging investment result, which fell to SFr2.604bn (£1.1bn)from SFr3.931bn (£1.6bn)the year before. Net income from property and casualty business declined to SFr104m (£44.9m)for the first half from SFr1.032bn (£562m)in the same period last year.
Shares in The Innovation Group (TiG)plummeted by 74%on 30 August after the software company revealed huge losses. It warned that annual profits would be about 25%of expectations, and announced an operating loss of £375.7m over the nine months to 30 June compared to a loss of £1.88m in the same period the year before.
This was in addition to a £350m goodwill writedown and a warning that TiG's second half revenue could fall by up to 40%.
Shares in TiG crashed as low as 10p before closing at 14p on30 August and then fell further when trading resumed on Monday, losing another 21%by midday.
The company's readjusted pre-tax profit for the nine months totalled £14.5m,up from £5.2m last time. Sales increased to £83.9m from £24.5m a year ago.
Wellington soared back into profit in the first half of 2002, making £3.7m before tax compared to a loss of £800,000 in the same period last year.
The group's operating profit before exceptionals was £7.8m compared to £200,000 the time before. The company forecast further rate rises for its Syndicate 2020,even after it has seen rates rise by up to 160%compared to 1999.
Setting an index value of 100 for 1999,the 2002 rates in aviation increased to 241%,energy increased to 261%,general non-marine increased to 213%and marine and special risks increased to 159%.