BRE.L Regulatory News (BRE)

22 Nov 2007 07:02

Brit Insurance Holdings PLC22 November 2007 EMBARGOED UNTIL 7AM ON 22 NOVEMBER 2007 22 November 2007 BRIT INSURANCE HOLDINGS PLC TRADING UPDATE - THIRD QUARTER 2007 Brit Insurance Holdings PLC ("Brit Insurance" or "the Group"), the UK-domiciledinternational general insurance and reinsurance group, today announces thefollowing trading update: Business written Gross premiums written by the Group in respect of ongoing business for the 9months to 30 September 2007 totalled £1,020.1m (30 September 2006: £978.3m), anincrease of 4.3%. Premium growth, when adjusted for exchange rate movements,(the "underlying increase"), was 9.2%. As anticipated, the majority of our premium growth has come from Brit GlobalMarkets which had an underlying increase of 14.7% to £565.9m (30 September 2006: £522.2m). Business written by the Reinsurance Underwriting Centre totalled£226.1m (30 September 2006: £236.8m), an underlying increase of 1.7%. Premiumswritten by Brit UK were £228.1m (30 September 2006: £219.3m), an underlyingincrease of 4.5% reflecting the investment we have made in our regional network. Ratings Rates achieved by Brit Global Markets and Brit Reinsurance have been in linewith our expectation, with modest decreases in most areas, albeit from a goodmargin environment. Brit UK rates have stabilised in property and motor, givingweight to our view that the market should start to improve in the second half of2008. Premium Rating Index (Base year: 2000) 30 30 31 31 31 31 31 31 31 Sept June Dec Dec Dec Dec Dec Dec Dec 2007 2007 2006 2005 2004 2003 2002 2001 2000-----------------------------------------------------------------------Brit GlobalMarketsAccident &Health 170 172 164 152 149 142 131 100 n/aAerospace 212 213 254 268 260 237 202 158 100Financial &Professional 271 274 276 280 280 265 207 122 100Marine 181 182 182 171 160 156 144 112 100Property 170 170 171 151 152 155 150 112 100----------------------------------------------------------------------Brit ReinsuranceProperty Treaty 207 212 198 155 153 154 149 110 100Treaty Casualty 231 234 234 228 230 215 182 115 100Marine XL 288 289 286 193 183 179 171 115 100Aviation XL 125 125 125 128 139 159 167 100 100----------------------------------------------------------------------Brit UKEmployers' /PublicLiability 217 219 237 257 284 286 200 100 n/aProfessionalIndemnity /D&O 110 107 118 130 132 130 100 n/a n/aMotor 101 101 104 111 122 120 115 108 100Property 123 123 125 130 131 132 123 104 100-----------------------------------------------------------------------These indices are to be read with caution. They are based on underwriters'estimates of rate changes, including adjustments to terms and conditions, andrelate to renewal business only, since this represents the business on which wehave the best year-on-year data. Claims Compared with the very benign levels of 2006, claims frequency and severity havereturned to more normalised levels across most classes with claims from eventssuch as the Australian floods, European Windstorm Kyrill, the UK floods,sub-prime, the California wildfires and a number of aviation and space losses.Brit Insurance's net claims arising from the July floods is £6.6m. Following areduction in our claims for the June floods to £9.5m from £10.6m, the combinednet claims for both the June and July floods is £16.1m. Investments Investment return for the 9 month period to 30 September 2007 totalled £93.3m, areturn of 3.7% (30 September 2006: £75.6m, 3.3%). The return for the period 1July to 30 September 2007 was £37.5m or 1.5%. Brit Insurance's investmentportfolio has minimal exposure to sub-prime debt. Expenses Group operating expenses for the 9 months to 30 September 2007 totalled £104.6m(30 September 2006: £100.5m), an increase of 4.1%. Acquisition costs for theperiod were £191.9m, 22.8% of net earned premium (30 Sept 2006: £182.7m and23.4% of net earned premium). Outlook Dane Douetil, Brit Insurance CEO said: "The third quarter has built on the solid performance of the first half year andwas particularly pleasing given the weakness of the dollar. Set against a morevolatile financial environment, our investment return for the quarter wasstrong. While rates in Brit Global Markets and Brit Reinsurance remain at satisfactorylevels, they are under continued downward pressure from the high levels of thelast two years. The UK market remains challenging but rates are generallystabilising and we expect to see an improvement in the next 12 months. Givennormal loss activity for the rest of the year, we are confident that our fullyear result will be in line with market expectations." Enquiries Dane Douetil, Chief Executive OfficerCarne Curgenven, Communications DirectorBrit Insurance Holdings PLC 020 7984 8500 Peter Rigby, David Haggie or Juliet TilleyHaggie Financial 020 7417 8989 Notes to Editors Brit Insurance's operations principally comprise three strategic business units:Brit Global Markets, Brit Reinsurance and Brit UK. All three have access to thetwo regulatory vehicles through which Brit Insurance underwrites: Brit InsuranceLimited which is a UK FSA regulated insurance company and Lloyd's syndicate 2987which is managed by Brit Syndicates Limited. Brit Insurance has UK underwritingoffices in London, Reading, Birmingham, Bristol, Glasgow, Leeds, Darlington,Ilford and Manchester. www.britinsurance.com This information is provided by RNS The company news service from the London Stock Exchange