31 Oct 2011 06:00
Interim Management Statement
FOR IMMEDIATE RELEASE31 OCTOBER 2011
Charles Taylor Consulting plc ("the Group")
INTERIM MANAGEMENT STATEMENT
Charles Taylor Consulting plc, the international provider of insurance services, today issues its interim management statement covering the period from 1 July 2011 to 31 October 2011 ("the period").
Results for the period are broadly in line with the Board's expectations, although the full year performance will be slightly lower than previously anticipated. The Group's financial position remains as stated in the half year results published on 19 August 2011.
Our focus is on delivering insurance services globally through three professional services businesses - Management, Adjusting, and Insurance Support Services - and on the ownership and orderly run off of insurance companies which are closed to new business through our Insurance Companies Run-off business.
The Management Services business provides mutual and captive insurance company management, investment management, and underwriting, coverholder and risk consulting services. As expected, a larger proportion of the revenue related to the Signal Mutual management fee is being earned in the second half of the year. In our shipping mutuals business the efforts associated with Solvency II and other regulatory requirements have continued to grow, which has resulted in slightly higher costs than anticipated. The captive management, risk management and underwriting services businesses are finding trading conditions challenging. Overall, the performance of the business remains solid.
Our Adjusting Services business provides loss assessments and claims-related advice to insurers and insureds across the energy, marine, aviation and non-marine sectors, focusing on large and complex insurance losses. The encouraging workloads identified at the half year have continued, particularly in the energy sector, and the business' financial performance continues to be good, although not quite as strong as during the summer.
Our Insurance Support Services business provides support services to clients in the London and International insurance markets, as well as providing third-party administration services to insurance companies in run-off. After a delayed start to the static claims management project in the first half of 2011, these contracts are generating more revenue in the second half. This, together with improved efficiency and resource utilisation, means that overall performance remains in line with expectations.
The Insurance Companies Run-off business owns insurance companies which are closed to new business and runs off their liabilities in an orderly manner. It works closely with our Insurance Support Services business which provides it with run-off administration services. The acquisition of Alico Isle of Man is expected to be earnings enhancing from 2012 onwards; however, no material financial impact is expected in 2011. The other run-off insurance companies owned by the Group are performing as expected, although our insurance companies have suffered slightly from recent falls in investment markets.
Commenting, David Marock, Group chief executive officer, said:
"Our fundamental business model continues to prove robust in difficult worldwide economic conditions. We are working on plans to grow the Group profitably, including identifying areas within the business where further investment is required, promoting joint working between our businesses, achieving greater efficiencies from our systems and improving our marketing to new clients.
For more information, please contact:
David Marock, Group chief executive officer: +44 (0)20 3320 8988
David.marock@ctcplc.com
George Fitzsimons, Group finance director: +44 (0)20 3320 2263
George.fitzsimons@ctcplc.com
Mike Lord, Group communications director: +44 (0)78 3140 1311
Mike.lord@ctcplc.com Notes to editors
1 Charles Taylor Consulting plc (www.ctcplc.com) is a leading provider of insurance services. It manages mutual insurance companies, advises insurers on complex insurance losses and provides administration and consultancy services to insurers and insureds worldwide. It also owns life and non-life insurance companies which are closed to new business.
2. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results
XLON