Lloyd's insurer SVB Holdings reported a loss after tax on ordinary activities of £88.3m for 2001, up from a loss of £7m in 2000. Its operating loss, based on a long-term rate of return, was £76.5m, down from a profit of £3.9m in 2000.
The group said its World Trade Centre loss estimate remains unchanged at £30m.
Loss per share was 46.4p, down from 3.7p in 2000. Net asset value per share fell to 66.2p, down from 112.5p in 2000.
Its overall combined ratio was 138.8%, deterioration from 99.7% in 2000. The combined ratio measures claims and costs as a percentage of premiums.
Many of the losses came from SVB's property book and its Lloyd's syndicate 1212. This produced the highest combined ratio of any syndicate writing property business and group chairman Rupert Villers described its performance in specialty and liability areas as "unacceptable".
Despite the losses, the group's gross written premiums were up 42% to £519.8m and gross technical reserves were boosted to £967.1m from £479.3m in 2000.
Price rises in the first quarter of 2001 were even higher in four out of five main business areas than in the last quarter of 2001.
Within the property reinsurance book, SVB has slashed back to nothing its writing of risk excess after problems emerged as long ago as 1999. Its direct property book has been cut by half, other than its Fusion initiative aimed at regional brokers.
Villers said: "What we have achieved has been overwhelmed by problem areas that have required, and received, radical corrective action.
"With the benefit of this we believe that 2002 will enable our strengths to be restored to prominence.
"We look forward to the challenge and we believe we can demonstrate that the underwriting talent within our group is capable of delivering results consistent with the aspirations of shareholders," he added.
