22nd Apr 2014 12:58
LONDON (Alliance News) - Randall & Quilter Investments Holdings Ltd Tuesday maintained its total dividend even as it saw pretax profit decline in 2013, as operating profit for its insurance investments and insurance services divisions both fell, while its underwriting management division remained loss-making.
The non-life insurance investor, service provider and underwriting manager posted a pretax profit of GBP9.6 million in 2013, down from a restated GBP11.6 million, as total income rose to GBP54.2 million from GBP51.8 million.
The company restated its 2012 results to include a GBP1.5 million profit from its acquisition Alma Insurance Company.
Net tangible assets per share held steady at 116.4 pence per share as as December 31, 2013, versus 116.7p a year before. Randall & Quilter declared an unchanged dividend of 8.4 pence per share for 2013, unchanged from 2012.
In Randall & Quilter's insurance investments division, it posted an operating profit of GBP8.7 million, down from GBP11.0 million, hit by weaker active syndicate participations, particularly in Syndicate 1991. Active syndicate participations produced an operating profit of GBP600,000, down from GBP6.7 million, but this was offset by benefits from legacy acquisition activity, reserve releases in a number of its insurance companies and its Syndicate 3330, and higher-than-budgeted investment income.
In its Insurance Services Division, Randall & Quilter posted an operating profit of GBP9.8 million, down from GBP10.1 million, supported by a high level of credit write backs, particularly in the US.
The Underwriting Management Division posted an operating loss of GBP200,000, narrowed from a loss of GBP1.5 million in the previous year, as it saw higher fee income and costs benefits after it launched Syndicate 1991. This was offset by the continued investment in the division's infrastructure, and slower-than-expected acquiring of third party management contracts.
The company doubled the underwriting capacity of its Syndicate 1991 to GBP150 million for the year, and said that the syndicate remains on track for its medium- and long-term goals.
It said that it was actively looking for ways to generate additional fee income from Syndicate 1991.
"While it has taken longer than planned to build our live underwriting platform, we remain confident that the overall strategy provides a firm foundation for strong, sustainable growth in the future," the company said in a statement.
Shares in Randall & Quilter were trading up 0.4 pence at 131.04p Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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