Omega Insurance cancels dividend as losses double

Omega Insurance Holdings has doubled its pre-tax losses for the full year ended December 31st, prompting it to cancel the dividend. Loss before tax was $94.7m compared to a loss of $42.9m the previous year, on an income of $304.6m (2010: $356.1m) and net revenues of $257m (2010: $261.4m), hit by a leap in the number of claims made, particularly after the earthquakes in Japan and New Zealand. The effect of the catastrophe losses totals $85.6m (2010: $55.0m).Gross premiums had a written reduction of 14.5%, in line with the firm's plan. It wasn't all bad news, however, as basic earnings per share rose from 17.6 cents to 36.5c, while cash levels jumped from $37.9m to $52.8m. Richard Pexton, chief executive officer, said: this has been a difficult year, with an unprecedented frequency of large catastrophe losses, together with a frustrating corporate activity process. During 2011, we have continued the repositioning of our business which is now aligned with the board's current risk appetite."We are seeing encouraging signs in the market with re-pricing in our core classes, with 60% of our portfolio showing increases of more than 5%. We remain a well capitalised business. The transformation of our business mix and the positive pricing movements we are now seeing leave us in a good position to take advantage of market opportunities in 2012."Omega shares lost 2.49% to 49.00p by 13:16. NR