12th Nov 2014 10:00
LONDON (Alliance News) - Specialist Lloyd's insurer, Novae Group PLC, Wednesday reported stronger investment returns and a 6% rise in gross written premium, but warned of downward pressure on policy renewals premium rates.
In a statement, Novae said gross written premium increased to GBP515.1 million in the first nine months of 2014, compared with GBP484.6 million in the corresponding period last year. However, weighted average rates on renewal premium fell 3.3%, with rates for US property catastrophe reinsurance down 10% on the year.
Still, Novae said overall claims experience for the year to date has been favourable.
"Attritional losses are within expectations and exposure to catastrophe events remains limited with another quarter of benign experience. Anticipated net losses of the Malaysian Airline tragedies remain within normal risk appetite," Novae said.
Investment return for the first nine months rose to 1.0% from 0.7% in the same period last year.
"Good new business growth, active capital management and disciplined underwriting has allowed us to build on the positive momentum gained in the first half of the year. This focus, in addition to another quiet period for catastophe events, leaves the business in a strong position for the final quarter and going into 2015, despite the softening pricing environment," Chief Executive Matthew Fosh said in a statement.
"Absent any significant market event in the final quarter, the group is well positioned to deliver a strong performance for the full year," Novae added.
Novae shares were up 0.5% at 537.00 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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