2nd Mar 2016 09:17
LONDON (Alliance News) - Specialist insurer Novae Group PLC on Wednesday said its pretax profit slipped in 2015 but its gross written premiums increased thanks to investments made in its underwriting teams.
Novae said its pretax profit for the year to the end of December fell to GBP55.4 million from GBP62.6 million, pushed lower by an increase in policy acquisition costs and a rise in claims incurred by the group.
Gross written premiums for the company rose to GBP787.0 million from GBP638.5 million, driven in part by like-for-like growth in its existing units but more through investments made in new underwriting teams.
The company's claims ratio at the close of the year was 48.3%, down from 49.1% a year earlier, while its combined ratio was 90.8%, down from 91.0%. A combined ratio below 100% indicates a profit, so the lower the figure the better for an insurer.
Novae will pay a final dividend of 20.0 pence per share, up from 18.2p, taking its total ordinary dividend up to 27.3p, up 10% year-on-year. Novae also will pay a special dividend of 22.5p, up from 20.0p.
"I am delighted with the performance of the group this year and the high quality returns we have produced. The progress we have made strategically and operationally has manifested itself in another strong set of results. Market conditions remain undoubtedly difficult, however the business is now better placed than it has ever been to deal with the challenges ahead," said Matthew Fosh, Novae's chief executive.
Novae shares were up 2.5% to 811.50p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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