4th Mar 2015 09:04
LONDON (Alliance News) - Specialist insurance company Novae Group PLC Wednesday said its pretax profit pushed higher in 2014 on the back of foreign exchange gains and higher gross written premiums, as it hiked its dividend and maintained its special payout.
Novae said its pretax profit for the year was GBP62.6 million, compared to GBP42.8 million a year earlier, with foreign exchange providing a GBP10.2 million boon against an GBP11.4 million headwind in 2013. Stripping out the foreign exchange gain and exceptional items, Novae's pretax profit was broadly flat at GBP52.4 million versus GBP54.2 million.
Gross written premiums rose to GBP638.5 million in the year, up from GBP590.3 million, driven by a strong performance in its Marine, Aviation and Political Risk and Property divisions. This was partly offset by a weaker performance in its Agriculture division and a slowdown for its Casualty line.
Claims incurred over the year fell, down to GBP284.8 million from GBP339.9 million, and Novae said its net claims ratio was 49.1%, compared to 52.4% a year earlier.
Novae said it would pay a final dividend of 18.2 pence per share, up from 16.5 pence per share, and said it would maintain a special dividend payment of 20 pence per share. The rise in the final dividend brings its total dividend for the year to 24.8 pence per share, a 10% increase.
"The group has again performed strongly, achieving record premiums, an improved claims ratio, and making good progress operationally. Opportunities for profitable growth remain for those with the agility to navigate a challenging market environment. We continue to invest in the business, to attract talented people and to develop new ideas, all of which are maintaining and building the group's momentum," said Chief Executive Matthew Fosh.
Shares in Novae were up 4.3% to 651.25 pence Wednesday, one of the best performers in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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