SVB Holdings, the London-listed insurance group, said in a trading update that the 2002 and 2003 years of account at its Lloyd's managing agency, SVB Syndicates, continued to develop favourably with a low level of loss incidence.
Chief executive Matthew Fosh said the changes started at SVB in 2001 continued steadily to return the company to full health.
He said underwriting performance over this period remained very encouraging and, going into the third quarter of 2003, the group continued to enjoy excellent trading conditions.
"We remain confident on the outlook for the year and look forward to the announcement of our interim results on 12 September," said Fosh
The company said it had continued to enjoy strong rate increases during this year, particularly the 37% rise for specialty lines.
Development for the 2002 year of account remained "very encouraging" and in line with previous statements. The company said claims experience had been favourable in many areas and the benefits of determined rating action were increasingly apparent.
The current incurred loss ratio was 9.8% for 2002, which compared favourably not only with previous years but also with the ratio of 18.4% recorded in 1994, the group's previous best year.
For the 2001 year of account, SVB's two wholly-owned syndicates performed well, with both Syndicate 575 and Syndicate 2147 showing an improved result.
Syndicates 1007 and 1241 experienced adverse movement in the casualty book. Syndicate 1212 faced similar experience, but the result had been protected by the adverse development cover purchased last year.
The group said losses arising from the events of 11 September 2001 remained stable at both gross and net level. The current incurred loss ratio stood at 81% of the projected ultimate gross loss.
