29th Jul 2005 12:30
SVB Holdings PLC29 July 2005 For immediate release SVB HOLDINGS PLC Q2 2005 Syndicate Forecasts SVB Syndicates Limited, the Lloyd's managing agency owned by SVB Holdings PLC(SVB), today announces updated quarterly forecasts for its managed syndicatesfor the 2003 and 2004 Years of Account as well as for the 2002 run-off accounts.In addition, some initial views are provided on trading to date in 2005. •Estimated £8 million utilisation of the provision for discontinued units during Q2 (Q1: £5 million). As a result, some £54 million of the provision established as at 1 July 2004 remains unutilised and available to carry forward •The forecast loss for Syndicate 1241 2002 Year of Account (in run off) is increased by five points, reflecting the experience in discontinued units thus far in 2005. No change to Syndicate 1007 2002 Year of Account (in run off) •Forecast profitability for both 2003 and 2004 is increased •Rate changes during the first half of 2005 amount to an average reduction of 4% 2004 Year of Account Syndicate Capacity Owned by Current Forecast Previous Forecast £m SVB (%) % % 1007 215.6 80.5 7.5 - 12.5 7.5 - 15.02147 286.4 100.0 7.5 - 12.5 5.0 - 12.5 For Syndicate 1007 the net incurred loss ratio at this stage (11%) remainshighly satisfactory (2002, 9% at this stage, 2003, 3% at this stage), although alower than anticipated utilisation of stamp capacity depresses the forecastrange as a percentage of stamp. Syndicate 2147, since absorbing the windstorm activity in the second half oflast year, has seen favourable claims experience in the first half of 2005. Thenet incurred loss ratio is unchanged over this period at 34% (2003 15% at thisstage, 2002 24% at this stage). 2003 Year of Account Syndicate Capacity Owned by Current Forecast Previous Forecast £m SVB (%) % % 1007 151.0 79.1 16.0 - 21.0 13.5 - 18.52147 286.4 100.0 14.0 - 19.0 13.5 - 18.5 Syndicate 1007 in the 2003 Year of Account continues to enjoy favourable claimsexperience. The net incurred loss ratio is 12% (2002 23% at this stage, itselfthe best performance since 1993). Syndicate 2147, shorter tail in nature, also continues to show encouragingdevelopment, with a net incurred loss ratio of 32% (2002 44% at the same stage).A small positive revision to the forecast is warranted. 2002 Run-Off Years Syndicate Capacity Owned by Current Forecast Previous Forecast £m SVB (%) % % 1007 150.8 55.4 (5.0) - 5.0 (5.0) - 5.01241 168.9 99.7 (70.0) - (50.0) (65.0) - (45.0) The experience from discontinued business results in utilisation of theprovision in the first half of around £13 million. The impact falls more heavilyon Syndicate 1241, hence the change in the forecast. The forecast for theSyndicate 1007 run-off year remains unchanged. Current Trading Overall we saw a 4% rate reduction on business written in the first six monthsof the year. Provided claims experience is consistent with business planassumptions, this suggests another profitable year for both syndicates. As previously announced, we plan to reduce the capacity of Syndicate 1007 for2006 to £120 million. For Syndicate 2147 we currently plan to maintain capacityat £286 million. On this basis overall managed capacity for 2006 is £406 million(2005: £437 million), although plans for both syndicates remain subject toongoing review. - ENDS - For further information: Matthew Fosh, SVB Holdings PLC 020 7903 7300 Nick Miles, M Communications 020 7153 1539 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Novae Group