ADV.L Regulatory News (ADV)

19 Aug 2005 09:32

Advent Capital (Holdings) PLC19 August 2005 Advent Capital (Holdings) PLC ("Advent" or the "Company") Syndicate 780 Results and Forecasts Advent Capital (Holdings) PLC, which listed on AIM in June 2005, has todayreleased its latest forecast results for Syndicate 780's 2003 and 2004underwriting years of account as at 30 June 2005. Advent Syndicate 780 has continued its strong performance and is set to deliveran impressive profit in the region of £63m or 27.5% of capacity, for the 2003year of account. This follows a profit of £47m (31.3%) for the 2002 year ofaccount. As noted at the time of the listing, in 2004 the insurance industry was impactedby the worst level of natural catastrophe losses on record with four hurricaneshitting the south-eastern United States, the Tsunami and a number of typhoonshitting Japan. These events have impacted the Syndicate's underwriting accountas reflected in the Syndicate 2004 account forecast loss of between 12.5% and17.5% of capacity. This is well within the Group's expectations for such aseries of events and will not impact upon the capital raised this year. These forecasts are after standard personal expenses and profit commission butbefore members' agents' fees. Year of Capacity % owned Syndicate Previous Syndicate Account £m Forecast Result Forecast 2003 222.7 46.9 25% - 30% 22.5% - 27.5% 2004 215.4 47.7 (12.5% - 17.5%) - Syndicate 780's 2003 account expected result can be attributed to the strongunderwriting disciplines employed by the Group, good pricing terms and a lack ofmajor catastrophes in 2003. The 2003 forecast result should ensure that Advent Syndicate 780 continues tooutperform the Lloyd's market with an average return on capacity over an elevenyear period since 1993 of 30.25% before names expenses compared to 1.60% for theLloyd's market. The Syndicate is underwriting in 2005 with a capacity of £153m. Written premiumincome and claims at 30 June are both within the 2005 business plan. Brian Caudle, Executive Chairman of Advent, commented: "The 2003 result reflects Advent's ability to significantly outperform theLloyd's market. Whilst the unprecedented level of hurricanes in 2004 hasimpacted Syndicate 780 the impact is within the Group's expectations." 19 August 2005 For further information: Advent Capital (Holdings) PLCKeith ThompsonChief Operating Officer 020 7743 8201 Pelham Public RelationsJames 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. • 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%. • Over the most recent 10 closed years of account (1993-2002), the Syndicate has returned an average profit of 30.2%, compared to the Lloyds average of 0.36% over the same period. • 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 Exchange