13th Sep 2005 07:02
Advent Capital (Holdings) PLC13 September 2005 13 September 2005 Advent Capital (Holdings) PLC ("Advent" or the "Company") Hurricane Katrina Update Advent has completed an initial assessment of the potential impact of claimsfrom Hurricane Katrina. Given the complexities of this major event it may be asignificant length of time before an accurate forecast of the ultimate loss canbe made. However, in order to produce this initial estimate an insured market loss ofUS$35 billion has been used. Advent Syndicate 780, which specialises inproperty insurance and reinsurance business, has initially projected a net costto the Syndicate of £61 million (US$112 million). This estimate means the net cost of Hurricane Katrina to Advent Capital(Holdings) PLC will be in the region of £32 million (US$59 million). Advent isdue to publish its interim results on Friday 16 September and further detailswill be given at that time, Keith Thompson, Chief Operating Officer, Advent Capital (Holdings) PLC commented"The underwriting business has performed ahead of expectations in the first sixmonths of the year helped by a reasonably benign claims environment. Wetherefore believe the strength of the underlying business will, in the absenceof further major losses, significantly mitigate the impact of Hurricane Katrinaon Advent. As a result of this event, we expect to see a strengthening of ratesin all of our specialist classes." Exchange Rate used for estimates US$1.82= £1. For further information: Advent Capital (Holdings) PLCKeith Thompson Chief Operating Officer 020 7743 8201 PelhamJames Henderson 020 7743 6670 Advent Capital (Holdings) PLC, which listed on AIM in June 2005, is a leadingLloyd's insurer which manages and participates on Syndicate 780. The Syndicateis predominantly a short tail property reinsurance and insurance syndicatespecialising in catastrophe business. Advent intends to announce its maiden interim results for the half year ended 30June 2005 on 16 September 2005. Notes: • Advent listed on AIM in June 2005 raising a total of £65 million. • The new capital is to be used to provide permanent support for the underwriting on Syndicate 780 for 2006 and onwards. • The pro-forma assets of the Group at listing included £119.5 million of cash and £100 million of syndicate investments. • Advent manages and participates on Syndicate 780 through Advent Underwriting Limited (a Lloyd's managing agency) and Advent Capital Limited (a corporate member of Lloyd's). • Advent Underwriting Limited, which was formed in 1975, has operated in the Lloyd's market for thirty years. • Syndicate 780 has outperformed the Lloyd's market in 27 of the last 29 closed years of account returning an average profit of 18.5% compared with the Lloyd's average of 1.3%. • Syndicate 780's latest forecast results as at 30 June 2005 were: • 2003 account - profit 25% - 30% of underwriting capacity (total capacity £228 million) • 2004 account - loss 12.5% - 17.5% of underwriting capacity (total capacity £216 million) • Advent's management is led by Brian Caudle (Executive Chairman and Director of Underwriting) and Keith Thompson (Chief Operating Officer). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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