5th Aug 2015 08:33
LONDON (Alliance News) - Specialist insurer Novae Group PLC on Wednesday said its pretax profit was dragged lower by the weak euro in the first half, as its gross written premiums increased and it hiked its dividend.
Novae said its pretax profit for the six months to the end of June was GBP16.9 million, down from GBP21.3 million the year earlier due to a GBP12.1 million hit it took from currency translation effects. Stripping out the effect of the weak euro on its results, pretax profit was up to GBP29.0 million from GBP22.6 million, a 28% rise.
The group said it would pay an interim dividend of 7.3 pence per share, up from 6.6p.
The group said its gross written premiums for the half rose to GBP463.1 million, up from GBP362.3 million, driven by a 7.7% growth in like-for-like premiums and by a boost from its investment in new underwriting teams.
Its claims ratio improved to 47.8% in the half, compared to 48.9% a year earlier, while its combined ratio improved to 89.8% from 91.8%. Ratios below 100% represent profitable business.
Net investment income for the firm was down to GBP3.8 million from GBP7.4 million.
"Novae has achieved a strong performance in the first half of 2015. Investment in underwriting has produced disciplined growth in targeted classes, delivering a record underwriting contribution. Novae's agility and expertise, together with ongoing improvements to the business, enables us to find and exploit good opportunities in a challenging market," said Matthew Fosh, Novae's chief executive.
Shares in Novae were down 0.8% at 727.50 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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