26th Sep 2013 12:21
LONDON (Alliance News) - Hampden Underwriting PLC Thursday said its pretax operating profit rose in the recent half-year, after increased premiums pushed up revenue.
Hampden Underwriting, which participates in a portfolio of Lloyd's syndicates rather than managing syndicates itself, said its pretax operating profit was GBP602,000 for the six months to June 30, up from GBP334,000 for the corresponding period the year prior.
The increase was primarily a result of increased gross premiums written, which increased 42% to GBP7.2 million. This was the primary reason behind a 45% increase in revenue to GBP4.7 million.
"The six months ended 30 June 2013 shows some significantly improved figures. This has occurred both as a result of good overall results in the Lloyd's market and the benefit of our acquisitions of Lloyd's Limited Liability Vehicles, made over the last few years, delivering a performance commensurate with the Directors' expectations at the time of purchase," Michael Oliver, non-executive chairman, said in a statement.
"There are a number of potentially rewarding uses of our capital but the acquisition of further LLVs would seem the most attractive for the time being. As and when we are successful we will make the appropriate announcements," Oliver added. He said Hampden Underwriting was currently negotiating three possible acquisitions.
Hampden Underwriting's investment arm produced weaker results, with net investment income down to GBP24,000 from GBP204,000 because its investments were given a lower value than last year.
In its half-year results published Thursday, the Lloyd's of London market said its own profit slipped 10% to GBP1.38 billion because of lower investment returns. Its gross written premiums, like Hampden Underwriting's, increased.
Hampden Underwriting shares were Thursday quoted at 134.00 pence, up 9.00 pence, or 7.2%.
By Samuel Agini; [email protected]; @samuelagini
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