Kin Group Regulatory News (KIN)

24 Feb 2005 08:00

Kiln PLC24 February 2005 Kiln plc R J Kiln & Co Limited Syndicate Results and Updated Forecasts R J Kiln & Co Limited (Kiln), the Lloyd's managing agency wholly owned by Kilnplc, has today published the results for its managed syndicates for the 2002year of account and forecasts for the 2003 and 2004 years of account. The results for the closed 2002 year of account on all four Kiln syndicates areshowing profits in line with the forecasts made in November 2004, in spite ofthe subsequent adverse US dollar/sterling exchange rate movements: the resultswere calculated using an exchange rate of US$1.92, compared with an earlier rateof US$1.82. Flagship Syndicate 510 - which accounts for over 75% of thecompany's capacity - delivered a profit of 17.6% on capacity. The forecasts forthe 2003 open year of account are holding, notwithstanding the adverse exchangerate movements. The company is also forecasting profits across all four of itssyndicates for the 2004 year of account, in spite of its bearing the brunt ofthe calendar year's hurricane and typhoon losses. Edward Creasy, Chief Executive Officer, R J Kiln & Co Limited, commented: "These forecasts and results show that Kiln continues to perform exceptionallywell and is taking the best advantage of the excellent trading conditions." 2002 account results and 2003 account forecasts The results and forecasts set out below take into account all managing agencyand Lloyd's charges. 2002 account results Results (percentage of capacity) Previous forecast2002 Account Capacity as at November 2004 £m % %Syndicate 510 388 17.6 19.7 to 14.7Syndicate 557 47 40.4 43.2 to 38.2Syndicate 807 63 14.8 18.4 to 13.4Syndicate 308 4 7.8 5.9 to 2.9 2003 year of account forecasts Previous forecast2003 Account Capacity Forecast range as at November 2004 £m % %Syndicate 510 483 19.7 to 14.7 17.5 to 12.5Syndicate 557 55 37.5 to 32.5 39.2 to 34.2Syndicate 807 87 15.3 to 10.3 15.5 to 10.5Syndicate 308 4 7.5 to 4.5 7.5 to 4.5 2004 year of account forecasts Kiln has also published initial estimates for its 2004 year of account. In thelight of the large amounts of premiums yet to be earned for the year, thesefigures should be regarded as preliminary only and are subject to no significantcatastrophes or other adverse developments occurring in the future which mayhave a detrimental impact on the Kiln portfolio. Forecast range (percentage of capacity)2004 Account Capacity £m %Syndicate 510 507 9.0 to 4.0Syndicate 557 55 9.2 to 4.2Syndicate 807 113 11.1 to 6.1Syndicate 308 5 7.2 to 2.2 These forecasts are pure year only and are based on the following pure yearassumptions: • Ultimate net claims settlements have been estimated on the basis of paid and known outstanding claims as at 31st December 2004, together with an assessment of future claims settlements derived, where appropriate, from projections based on previous claims history on the assumption that past experience is a reliable indicator of future developments. • There will be no further abnormally large claims or aggregation of claims arising from catastrophe events or other causes. • There will be no significant deviation from projected cash flow patterns or in investment income forecasts. • All Lloyd's years of account will be closed under standard Lloyd's accounting procedures. • Exchange rates will not differ significantly from those at 31st December 2004. 24 February 2005 Enquiries: Kiln plcEdward Creasy, Chief Executive Officer 020 7886 9000Kate Rogers, Head of Communications College HillTony Friend 020 7457 2020Roddy Watt This information is provided by RNS The company news service from the London Stock Exchange