LONDON (Alliance News) - Specialist insurer Novae Group PLC warned on Wednesday that it continues to see higher losses in the second half of the year than in 2015, although its premium growth has continued.
Novae, which operates in the Lloyd's of London insurance market, said its gross written premiums increased by 16% to GBP717.4 million for the nine months to September 30, up from GBP619.5 million at the same date the year before. However, Novae noted that at constant currency rates this was a 9% rate of growth.
Novae said it has experienced an increases in losses from natural catastrophes so far in 2016 and seen a number of large risk losses. The company also said its full year result will be hit by Hurricane Matthew, which caused severe damage in the Caribbean and US in October, with current loss estimates between USD10 million and USD 15 million.
Novae noted that its Marine, Aviation and Political Risk insurance divisions have seen significant pricing pressure, but Cyber rates are increasing as product demand grows.
"Our trading experience during the first half of the year continued into the third quarter, with a higher incidence of larger individual risk and catastrophe losses partially offset by a strong investment performance. Our focus on disciplined underwriting remains, continually reshaping our portfolio to focus on those underwriting areas where we have a demonstrable competitive advantage," said Matthew Fosh, chief executive officer.
Shares in Novae were down 1.6% at 789.50 pence Wednesday morning.
By Adam Clark; adamclark@alliancenews.com
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