TIDMBRIT
RNS Number : 8960G
Brit PLC
13 May 2014
Brit PLC
PRESS RELEASE
13 MAY 2014
INTERIM MANAGEMENT STATEMENT
Brit PLC ('Brit' or 'the Group'), the global specialty insurer
and reinsurer, releases the following Interim Management Statement
for the three months ended 31 March 2014.
Key points
-- Gross written premium GBP336.5m (31 March 2013: GBP332.6m),
an increase of 1.2%. The increase at constant exchange rates was
6.5%.
-- Claims experience in line with expectations and no major loss events.
-- Investment return for the period of GBP28.6m (net of
investment management fees), representing a non-annualised return
for the quarter of 1.1% (2013: GBP24.3m/0.9%).
-- Continued development of US operations, with Brit Global
Specialty USA (BGSU) premiums of US$35m, up 69% over the same
period in 2013.
-- Agreement signed to assume renewal rights to QBE's
London-based dedicated Lloyd's aviation business from 1 June.
Mark Cloutier, Group CEO of Brit PLC, said:
'The Group has made a good start to the year and we are
delighted to announce our first interim management statement as
Brit PLC. Top line premium growth of 6.5% on a constant exchange
rate basis reflects the success of new initiatives and team hires
made in 2013. Our focus on optimising the risk adjusted return on
our investment portfolio has delivered a solid return for the
period of 1.1%.
With respect to growth initiatives, our new Bermuda office has
had a successful start to 2014 writing over US$16m of premium and
in Q2 we welcome our recently announced UK property team to the
platform and the opening of our Miami-based Latin American Office.
We are also delighted to announce a renewal rights transaction with
QBE which will see Brit inherit a market leading Aviation team from
1 June.
The current market presents both challenges and opportunities.
We will continue to build on our highly efficient Lloyd's-based
business model supported by our global distribution network, while
maintaining a clear focus on underwriting and pricing
discipline.'
Financial performance
Premium
Gross written premium Growth at
3 months ended 3 months ended constant
31 March 2014 31 March 2013 Growth FX rates
GBPm GBPm % %
----------------------- --------------- --------------- ------- ----------
Brit Global Specialty
Direct 215.7 199.4 8.2% 13.6%
Brit Global Specialty
Reinsurance 120.8 133.2 (9.3)% (4.1)%
Group 336.5 332.6 1.2% 6.5%
----------------------- --------------- --------------- ------- ----------
Gross written premium (GWP) for the three months ended 31 March
2014 increased by 1.2% to GBP336.5m (31 March 2013: GBP332.6m). At
constant exchange rates the movement was an increase of 6.5%.
Direct business totalled GBP215.7m (31 March 2013: GBP199.4m), a
13.6% increase at constant exchange rates, and reinsurance totalled
GBP120.8m (31 March 2013: GBP133.2m), a 4.1% decrease at constant
exchange rates.
The 13.6% increase in Brit Global Specialty Direct reflects the
continued expansion of the Group's Chicago based US service
platform, BGSU, which writes business on behalf of Brit Syndicate
2987. BGSU wrote premiums of US$35.1m in the three months to 31
March 2014, an increase of 69.0% over same period in 2013. The new
teams hired in 2013 by Brit Global Specialty London (High Value
Homeowners, Political Risks, UK Property and Fine Art & Specie)
also contributed to this increase.
The 4.1% reduction in Brit Global Specialty Reinsurance is in
line with expectations and reflects challenging market conditions
experienced primarily by the Property Treaty book. The Group has
maintained underwriting discipline in this environment. This
reduction was partly offset by new business written by the Group's
recently established Bermudan Office, which wrote over US$16.4m of
premium in the period, of which the majority was Casualty
Treaty.
Rate Environment
The overall rate environment has remained challenging with rates
across the book falling in line with expectations by 2.5% (31 March
2013: increase of 1.4%). In particular Property Treaty and Energy
have experienced pressure on rates, partly offset by increases in a
number of direct classes including Marine, Specialist Liability and
BGSU.
On the Group's own reinsurance protections, we have taken
advantage of current market conditions to significantly strengthen
our group-wide catastrophe cover.
Claims
Claims experience in the three months to 31 March 2014 was in
line with expectations. The Group had immaterial exposure to the
Malaysian Airlines MH 370 and Korean Ferry losses.
Investments
Investment return for the period was GBP28.6m (net of investment
management expenses) which equates to a non-annualised return for
the period of 1.1% (2013: GBP24.3m/0.9%). The return benefitted
from a tightening of credit spreads in the US over the quarter.
Total investment assets were GBP2.63bn at 31 March 2014.
Business Development
In January 2014, Brit announced the appointment of three senior
underwriters to develop a new UK property portfolio. This new team,
headed by David Hancock, will join Brit in the second quarter of
2014 and will form part of the Brit Global Specialty Property
Facilities Division.
In April, Brit announced that Juan Calvache will join the Group
in May to lead its new Miami-based Latin American business. The
office will focus on expanding BGSU's successful US Facultative
Property platform into the Latin American and Caribbean markets, in
line with Brit's strategy of growing efficiently and profitably
into international markets. Prior to joining Brit, Juan spent over
a decade with Partner Re where he built the Property Facultative
team.
Today, Brit is delighted to announce the signing of an agreement
with QBE Underwriting Limited to acquire the renewal rights to
their London-based dedicated Lloyd's Aviation business. As part of
the agreement, it is intended that all QBE's London-based aviation
underwriting and claims staff will transfer to Brit. Brit will
begin writing renewals of the assumed business into Syndicate 2987
on completion, expected to be on 1 June.
Matthew Wilson, CEO of Brit Global Specialty, commented: 'This
transaction presents an excellent opportunity for Brit to assume a
market leading team of highly experienced underwriters in a
business line where Lloyd's has significant scale and relevance on
a global basis. This type of transaction once again highlights
Brit's commitment to grow opportunistically and profitably. The
further diversification that this line of business brings to the
Group, alongside Brit's attractive Lloyd's capital structure and
scalable operating platform gives us confidence that this will be
accretive to the Group in the short term.'
For further information, please contact
Sam Dobbyn, Brit PLC +44 (0) 20 7984 8800
Tom Burns / Edward Moore, Brunswick +44 (0) 20 7404 5959
About Brit
Brit PLC is a market-leading global specialty insurer and
reinsurer, focused on underwriting complex risks. It has a major
presence in Lloyd's of London, the world's specialist insurance
market provider, and a significant US and international reach. The
Brit Group underwrites a broad class of commercial specialty
insurance with a strong focus on property, casualty and energy
business. Its capabilities are underpinned by strong financials.
Brit PLC is listed on the London Stock Exchange.
www.britinsurance.com
This information is provided by RNS
The company news service from the London Stock Exchange
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